Income Tax (Earnings and Pensions) Act 2003 section 35

Maximum annual award

Section 35 sets out the maximum value of free shares that may be awarded to a participant under a Share Incentive Plan in any single tax year.

  • The initial market value of free shares awarded to a participant in a tax year must not exceed £3,600
  • Initial market value means the market value of the shares on the date they are awarded
  • The plan itself must contain this limit as a formal requirement
  • The Treasury has power to change the £3,600 limit by order

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