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HMRC internal manual

Employee Tax Advantaged Share Scheme User Manual

HM Revenue & Customs
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Schedule 2 Share Incentive Plan (SIP): Eligibility: Introduction

Paragraph 13 of Schedule 2 imposes requirements in relation to the individuals to whom shares can be awarded under a Schedule 2 SIP. The specific requirements are set out in paragraphs 14 to 19 and must be reflected in the plan rules.

As dividend shares are not ‘awarded’ as such – they are not included within the meaning of ‘award of shares’ in paragraph 5 Schedule 2 – the plan requirements relating to eligibility do not apply to them.