How a Share Incentive Plan works
A registered Share Incentive Plan can provide partnership shares bought from salary, employer matching shares, free shares and dividend shares. Scheme limits and employer rules determine which options are available.
The holding period
Tax treatment can depend on how long shares remain in the plan. Removing shares early or leaving employment can change the Income Tax, National Insurance or Capital Gains Tax position.
Investment risk still applies
Tax advantages do not remove investment risk. Holding both employment income and investments in one company can increase concentration risk if the employer performs poorly.