Income Tax (Earnings and Pensions) Act 2003 section 18

Requirement not to participate in other SIPs [ITEPA 2003 Sch 2 para 18]

Section 18 prevents an employee from participating in share awards under more than one Schedule 2 Share Incentive Plan (SIP) run by the same company or a connected company in the same tax year.

• An individual cannot receive free, matching or partnership shares under a SIP if they are simultaneously participating in another Schedule 2 SIP operated by the same company or a connected company.
• An individual is treated as having participated in a free share award even if they received nothing, provided the only reason was their failure to achieve a performance allowance.
• A connected company includes one that controls, is controlled by, or is under common control with the company operating the SIP.
• A connected company also includes a member of a consortium that owns the company, or a company partly owned by the company as a consortium member.