Reshma Johar offers a checklist for businesses and advisers considering a share incentive plan.
Of the four types of approved schemes, the share incentive plan (SIP) and save as you earn (SAYE) scheme must be offered to ‘all’ employees and on similar terms.
‘All’ employees?
All eligible employees who are UK tax resident are eligible to participate in a SIP and are invited to. It may be possible for employees who meet the eligibility requirements but who are not chargeable to tax under ITEPA 2003 to participate under the plan, albeit with further conditions to meet. Any participation in the scheme must be made on the same terms.
That said, it is possible to award employees free shares on terms by reference to remuneration, length of service or hours worked by an employee. It is also possible for a company to impose more than one
