s 488 ... Share incentive plans (SIPs)
(1) This Chapter provides— (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (b) for exemptions from income tax in connection with shares obtained under share incentive plans (“SIPs”) which are Schedule 2 SIPs , (c) for amounts to count as employment income in certain circumstances in connection with such plans, and (d) for the making of PAYE deductions in connection with such amounts. (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) The provisions of— (a) this and the following sections of this Chapter, (b) Schedule 2, and (c) the provisions mentioned in section 515 (tax advantages and charges under other Acts), together constitute “the SIP code”. (4) In the SIP code— ... “ PAYE deduction ” means a deduction required by PAYE regulations; “ Schedule 2 SIP ” is to be read in accordance with paragraph 1 and Part 10 of Schedule 2; a “ share incentive plan ” (or “ SIP ” for short) means a plan established by a company providing— for shares to be appropriated to employees without payment (“free shares”), or for shares to be acquired on behalf of employees out of sums deducted from their salary (“partnership shares”). (5) Other expressions used in the SIP code and contained in the index at the end of Schedule 2 have the meaning indicated by the index.