Income Tax (Earnings and Pensions) Act 2003 section 60

Ratio of matching shares to partnership shares

Section 60 sets out the rules governing the ratio of matching shares to partnership shares that a company may offer under a partnership share agreement, including the maximum permitted ratio and requirements for notifying employees of changes.

• The partnership share agreement must specify the current ratio of matching shares to partnership shares and the circumstances under which the company may change it
• The maximum permitted ratio is 2 matching shares for every 1 partnership share, calculated by reference to the number of shares
• If the company changes the ratio before partnership shares are awarded to the employee, the company must inform the employee
• The Treasury has the power to amend the maximum ratio by substituting a different ratio through a statutory order