SIP—eligibility requirements and self-certification process

FORTHCOMING CHANGE: Following its announcement as part of the Spring Budget on 15 March 2023, HMRC published a call for evidence on how to improve and simplify non-discretionary tax-advantaged Save As You Earn (SAYE) and Share Incentive Plan (SIP) schemes on 5 June 2023. The call for evidence focused on the effectiveness and suitability of SAYE and SIP, participation levels in the schemes, their flexibility and ease of operation and administration, whether the schemes are appropriately targeted to incentivise share ownership amongst those on lower incomes, and how other performance incentives compare to SAYE and SIP. The deadline for responses was 25 August 2023 and the government’s response is awaited. For further details, see: Share Incentives weekly highlights—8 June 2023..

A share incentive plan (SIP) gives employees the opportunity to acquire shares in their employer or a parent company of the employer on a tax-efficient basis.

As SIPs are designed to be offered to all employees (rather than on a selective basis), they tend to be operated by larger listed companies.

If the statutory provisions are met and the SIP is correctly