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FAQ: How does it work?
If your company decides to set up a Share Incentive Plan, it can choose to offer you one or a combination of four types of plan shares. These are
• free shares
• partnership shares
• matching shares
• dividend shares
The plan works by keeping the shares in a trust for you until you either leave your job or decide to take the shares from the plan. The shares must be kept in the plan trust for a specified number of years to give you the full tax benefits.
The Share Incentive Plan rules described in this booklet act as the framework for plans set up by employers and provide them with some choices. You should check the details of your own employer’s plan.
Source: Inland Revenue