Income Tax (Earnings and Pensions) Act 2003 Schedule 2 paragraph 4

Group plans

Schedule 2 paragraph 4 explains how a Share Incentive Plan established by a parent company can be extended to cover other companies it controls, forming what is known as a group plan.

• A parent company that controls other companies may set up a SIP that extends to all or any of those subsidiary companies
• A SIP that a parent company extends to other companies in this way is known as a "group plan"
• A "constituent company" within a group plan means either the parent company itself or any other company to which the plan currently extends
• Separate rules in paragraph 91 address the treatment of jointly owned companies and companies controlled by them