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HMRC internal manual

Employee Tax Advantaged Share Scheme User Manual

Schedule 2 Share Incentive Plan (SIP): Rights issues: What they include

Paragraph 99(1) states, inter alia, that ““rights arising under a rights issue” means rights conferred in respect of a participant’s plan shares to be allotted, on payment, other shares or securities or rights of any description in the same company”. This definition is sufficiently broad as to include:

  • rights offers (where the rights to acquire further shares or securities will lapse and have no value if or to the extent that the shareholder does not take them up),
  • rights issues (where the rights are transferable and can be wholly or partly sold).