Q&As

Under a Company Share Option Plan (CSOP), Share Incentive Plan (SIP) and Save As You Earn (SAYE), a company that is controlled by the scheme organiser can be included as a constituent company. A ‘company’ is defined as a ‘body corporate’. Would an LLP be a ‘body corporate’ for the above purposes such that an LLP can be a ‘constituent company’ (assuming the scheme organiser controls the LLP)?

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Published by a ÀÏ˾»úÎçÒ¹¸£Àû Share Incentives expert
Published on: 28 January 2025
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The legislation governing each of CSOP, SIP and SAYE uses a definition of ‘constituent company’ that includes any other company to which the plan is expressed to extend where that company is controlled by a parent company (Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003), Schedule 2 Part 1, paragraph 4(3); ITEPA 2003, Sch 3 Pt 1, para 3(3); ITEPA 2003, Sch 4 Pt 1, para 3(3). All three also define a company as meaning a body corporate (ITEPA 2003, Sch 2 Pt 11, para 99; ITEPA 2003, Sch 3 Pt 9, para 48; ITEPA 2003, Sch 4 Pt 8, para 36).

The Limited Liability Partnerships Act 2000 (LLPA 2000) states that

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