What is a jointly owned company under section 91 of ITEPA 2003?

A jointly owned company is one where two persons each hold exactly 50% of the issued share capital and neither person alone has control. This equal ownership split means no single owner controls the company outright, creating a specific structure addressed by the group Share Incentive Plan rules under United Kingdom law.

How does deemed control work for jointly owned companies in group SIP arrangements?

For group SIP purposes, each joint owner is treated as controlling the jointly owned company and any companies it controls. This legal fiction ensures a 50/50 ownership split does not leave the jointly owned company outside both owners' group structures, allowing it to be included in a group Share Incentive Plan.

Can a jointly owned company participate in more than one group SIP?

No. A company caught by these rules cannot be a constituent company in more than one group plan simultaneously. If one company in the jointly owned structure participates in a particular group SIP, no other company in that structure can be a constituent company in a different group plan, preventing dual participation.

Does deemed control under section 91 affect plan share eligibility requirements?

No. The deemed control rule does not extend to the requirement that plan shares must be in a company not under another company's control. The fiction is limited in scope — it determines group plan membership but does not affect fundamental eligibility rules about the type of shares that can be used in a SIP.

Income Tax (Earnings and Pensions) Act 2003 section 91

Jointly owned companies

Section 91 sets out how jointly owned companies are treated for the purposes of group Share Incentive Plans (SIPs), including deemed control rules and restrictions on participation in multiple group plans.

Each joint owner of a jointly owned company is treated as controlling that company and any company it controls, for group SIP purposes
A jointly owned company is one where two persons each own exactly 50% of the issued share capital and neither person alone has control
No company in this structure may be a constituent company in more than one group plan, nor may it participate in one group plan if a related company in the same structure participates in a different group plan
These rules do not apply to the separate requirement that plan shares must be in a company not under another company's control

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