ETASSUM26130 | Schedule 2 Share Incentive Plan (SIP): Requirements relating to the trust and trustees of a Schedule 2 SIP: Record-keeping requirements

PAYE records

The trustees must maintain all records necessary for them to meet their own PAYE obligations and those of the participants’ employer(s), as far as they relate to the Schedule 2 SIP. This requirement must be included in the trust deed (paragraph 80(1)).

Participants in more than one Schedule 2 SIP

The trust deed must also include the requirement that the trustees must maintain records of participants who have participated in one or more other Schedule 2 SIPs established by the company or a connected company (paragraph 71A).

As individuals are able to participate successively in connected Schedule 2 SIPs in the same tax year, this requirement ensures that the trustee are able to monitor and enforce the annual limits on participation (see ETASSUM22160).