Income Tax (Earnings and Pensions) Act 2003 section 27

Requirement as to listing etc. [ITEPA 2003 Sch 2 para 27]

Section 27 sets out the requirements that shares must meet in terms of stock exchange listing, company control, or employee-ownership trust status in order to be eligible shares for a Share Incentive Plan (SIP).

• Eligible shares must be listed on a recognised stock exchange, or belong to a company not controlled by another company, or belong to a company subject to an employee-ownership trust, or belong to a company controlled by a listed company
• A "listed company" is one whose shares are listed on a recognised stock exchange, but which is not a close company — unless that close company status arises solely because it is subject to an employee-ownership trust
• A company is "subject to an employee-ownership trust" if it meets the trading requirement, satisfies the indirect employee-ownership requirement, is not (and has no group member that is) a service company, and is not controlled by another company (disregarding control by a trustee of the relevant settlement)
• The indirect employee-ownership requirement and the definition of "service company" are adapted from sections 312E and 312G respectively, with modifications including replacing relevant dates with 1 October 2014 and broadening time references

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