Income Tax (Earnings and Pensions) Act 2003 section 26

Shares must be part of ordinary share capital of certain companies

Section 26 specifies which companies' ordinary share capital the eligible shares in a Share Incentive Plan must belong to.

• Eligible shares must form part of the ordinary share capital of a qualifying company
• The shares can be in the employing company itself
• The shares can be in a parent company that controls the employing company
• The shares can be in a company that is, or controls, a member of a consortium owning the employing company or its parent