Income Tax (Earnings and Pensions) Act 2003 section 44

Partnership share agreements

Section 44 sets out the requirements for partnership share agreements under which qualifying employees authorise salary deductions for the purchase of partnership shares.

• The SIP must allow qualifying employees to enter into partnership share agreements with the company establishing the plan (referred to as "company A").
• Under these agreements, the employee authorises their employer company to deduct part of their salary specifically for the purchase of partnership shares.
• In return, company A undertakes to arrange for partnership shares to be awarded to the employee in accordance with the plan's rules.
• The "employer company" means the company through which the employee satisfies the employment requirement for participation in the plan.