Commentary on Sections Overview Chapter 1: Share incentive plans Section 984: Chapter to form part of SIP code etc
2519.This section provides that this Chapter forms part of the SIP code. The section also deals with the trustees’ acquisition of forfeited shares. It is based on paragraphs 1 and 6 of Schedule 4AA to ICTA.
2520.Subsection (2) makes clear that a consequence of treating the Chapter as part of the SIP code is that the definitions in Schedule 2 to ITEPA apply to the Chapter.
2521.Subsection (4) deals with the trustees’ acquisition of forfeited shares. The plan rules may require an employee to forfeit his or her plan shares if the employee leaves the company. No further deduction is allowed to the company if the forfeited shares are re-awarded. See section 996 exclusion 5. But it may be necessary to identify whether these shares are included in a later award. See, for example, section 994(6)(b). Subsection (4) identifies when forfeited shares are acquired for this purpose.