ETASSUM23110 - Schedule 2 share incentive plan (SIP): Shares that may be awarded: Eligible shares
A Schedule 2 SIP must provide for employees to acquire shares (‘eligible shares�) which satisfy the requirements of paragraphs 26 to 29 Schedule 2 ITEPA 2003.
Tax relief will only be given in respect of awards of shares which satisfy the relevant requirements. »Ê¹ÚÌåÓýapp company establishing the SIP must therefore ensure that the Plan rules define the eligible shares precisely so as to be able to self-certify that the SIP meets the requirements of schedule 2 (see ETASSUM11300):
- »Ê¹ÚÌåÓýapp plan documents must define the eligible shares precisely, such as ‘Ordinary £1 shares in X Ltd which satisfy paragraphs 26-29 Schedule 2â€�. Where there is only one class of share it would be acceptable to say “ordinary shares which satisfy paragraphs 26-29 etc.â€�.