Share incentive plan

Question 1

Participation

Answer 1

All employees

Question 2

Award of free shares by company

Answer 2

Max £3,000pa

Question 3

Partnership shares awarded by conpany

Answer 3

Maximum is lower of:

1) 10% salary
2) £1,500

Question 4

Awarded matching shares

Answer 4

Maximum is 2 per partnership share

Question 5

Dividends

Answer 5

Tax free if invested in further shares

Question 6

Holding period

Answer 6

> 5 years: No IT, NI or CGT
3-5 years: Taxed on original cost
<3 years: Taxed on full market value