SIP and twisted

In his recent Tax Journal article Thomas Dalby looks at a case where a client owns a specialist furniture makers, which is organised as a parent company that employs the directors and highly paid designers and cabinet makers; and a subsidiary that employs warehouse workers who handle the finished goods.

After a key member of the design team left, the directors decided that they needed to establish a share scheme to allow the design team to build up a shareholding in the company, with a view to getting them to stay with the company until my client is ready to retire and potentially sell the business in seven years’ time. The client is too large to implement an EMI plan and doesn’t feel that an option plan would work. Would a Schedule 2 SIP work in these circumstances?