Share incentive plan Flashcards
1
Q
Participation
A
All employees
2
Q
Award of free shares by company
A
Max £3,000pa
3
Q
Partnership shares awarded by conpany
A
Maximum is lower of:
1) 10% salary
2) £1,500
4
Q
Awarded matching shares
A
Maximum is 2 per partnership share
5
Q
Dividends
A
Tax free if invested in further shares
6
Q
Holding period
A
> 5 years: No IT, NI or CGT
3-5 years: Taxed on original cost
<3 years: Taxed on full market value
