Income Tax (Earnings and Pensions) Act 2003 section 57

Access to partnership shares

Section 57 sets out the rules governing an employee's right to withdraw partnership shares from a share incentive plan and the potential tax consequences of doing so.

• The plan must allow employees to withdraw any or all of their partnership shares at any time after they have been awarded.
• There is no restriction on when or how many partnership shares an employee may withdraw.
• Withdrawing partnership shares from the plan may trigger a tax charge.
• Any such tax charge arises under the rules for partnership shares ceasing to be subject to the plan.