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Share Incentive Plan information


The Share Incentive Plan (SIP) was first introduced in the UK in 2000. SIPs are a HMRC (His Majesty's Revenue & Customs) approved, tax efficient all employee plan, which provides companies with the flexibility to tailor the plan to meet their business needs. SIPs are becoming increasingly popular with companies that want to engage their workforce and recruit and retain key employees. From 6 April 2014, HMRC approval will no longer be required for a SIP to obtain tax benefits. Instead, an employer is required to self-certify that the SIP meets the requirements of the relevant legislation. Accordingly, from 6 April 2014, a SIP may no longer be referred to as an HMRC approved plan.

As of February 2020, SIPs are one of 4 employee share schemes in the UK, alongside Share Option Plans (CSOPs), Enterprise Management Incentives (EMI), and Savings Related Share Option Schemes (SAYE).[1]

There are 4 main elements to the SIP from which companies can choose to use one or more of the following: Free Shares, Partnership Shares, Matching Shares, Dividend Shares.

  1. ^ "Tax and Employee Share Schemes". GOV.UK. Retrieved 2020-02-24.

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