Share Incentive Plan - Matching Shares

Matching Shares

The company can give employees up to 2 Matching Shares for each Partnership Share they buy. These shares will be free of Income Tax and National Insurance at the date of award. To receive their allocation of Matching Shares the employee remain employed with the company for a period of between a minimum of 3 years and a maximum of 5 years. An employee can normally only take their Matching Shares out of the SIP in the 3 year period from the date of award if they leave the company. Income Tax and National Insurance will be payable on the market value of the shares at the date of removal. If the Matching Shares are removed between 3 and 5 years from the date of purchase, then Income Tax and National Insurance will be due on the lower of the value of the Matching Shares at the date of award and their market value on the date on which they are withdrawn from the SIP. If the Matching Shares remain in the SIP for more than 5 years no Income Tax or National Insurance is payable when the shares are eventually removed from the SIP. In certain circumstances, prescribed by HMRC, there can be no Income Tax or National Insurance liability when the employee leaves the company, no matter how long the shares have been held in the plan.