Paragraph 27

United Kingdom

(1)

If the plan provides for performance allowances the following requirements must be met with respect to performance measures and performance targets.

(2)

The performance measures used must—

(a)

be based on business results or other objective criteria, and

(b)

be fair and objective measures of the performance of the units to which they are or may be applied.

(3)

The performance targets must be set for performance units comprising one or more employees.

(4)

For the purposes of an award of free shares under the plan an employee must not be a member of more than one performance unit.

Notes on Schedule 8

F1: Sch. 8 repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 8 Pt. 1 (with Sch. 7)