Income Tax (Earnings and Pensions) Act 2003 section 71A

Duty to monitor participants in connected schemes

Section 71A requires trustees of a Share Incentive Plan (SIP) to maintain records of employees who also participate in other SIPs operated by the same company or a connected company.

• The trust instrument governing a SIP must include a specific record-keeping requirement for the trustees.
• Trustees must track participants who are involved in one or more other Schedule 2 SIPs.
• This monitoring obligation covers SIPs established by the company itself or by any connected company.
• The purpose is to ensure proper oversight where employees participate in multiple related share incentive arrangements.