Income Tax (Earnings and Pensions) Act 2003 Schedule 2 paragraph 70

Requirements etc. relating to trustees: introduction

Paragraph 70 introduces the rules that a Share Incentive Plan (SIP) must follow in relation to its trustees, setting out both mandatory plan requirements and additional trustee-related provisions.

• A SIP must meet specific plan requirements concerning the establishment of trustees (paragraph 71) and the trustees' obligation to meet PAYE obligations (paragraph 79)
• Trustees must act in accordance with participants' directions, must not dispose of plan shares, and must make payments to participants and give notice of share awards
• Trustees have powers to borrow money and to raise funds to subscribe for rights issues
• Trustees have additional duties in relation to tax liabilities, as set out in paragraph 80