SIP—valuation and compliance

A share incentive plan (SIP) gives employees the opportunity to acquire shares in their employer or a parent company of the employer on a tax-efficient basis.

As SIPs are designed to be offered to all employees (rather than on a selective basis), they tend to be operated by larger listed companies.

If the statutory provisions are met and the SIP is correctly notified to HMRC, favourable tax treatment can result.

Valuation of SIP awards

There are a number of different circumstances in which it will be necessary to value the shares subject to a SIP award. Shares will need to be valued at the time an award is

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