{
  "url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/schedule-2/paragraph-43",
  "json_url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/schedule-2/paragraph-43.json",
  "legislation": "ukpga/2003/1",
  "legislation_title": "Income Tax (Earnings and Pensions) Act 2003",
  "legislation_url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003",
  "path": "schedule/2/paragraph/43",
  "kind": "paragraph",
  "number": "43",
  "heading": null,
  "text": "(1) If a SIP provides for partnership shares, the following paragraphs apply—\nparagraph 44 (partnership share agreements),\nparagraph 45 (deductions from salary),\nparagraph 46 (maximum amount of deductions),\nparagraph 47 (minimum amount of deductions),\nparagraph 48 (notice of possible effect of deductions on benefit entitlement),\nparagraph 49 (partnership share money held for employee),\nparagraph 50 (application of money deducted where no accumulation periods),\nparagraph 51 (accumulation periods),\nparagraph 52 (application of money deducted in accumulation period),\nparagraph 53 (restriction on number of shares awarded),\nparagraph 54 (stopping and re-starting deductions),\nparagraph 55 (withdrawal from partnership share agreement),\nparagraph 56 (repayment of partnership share money on withdrawal of approval or termination), and\nparagraph 57 (access to partnership shares).\n(2) The plan must meet any plan requirements contained in those paragraphs.\n(2A) The plan must provide that partnership shares are not to be subject to any provision for forfeiture.\n(2B) Partnership shares may (notwithstanding sub-paragraph (2A) if relevant) be subject to provision requiring partnership shares acquired on behalf of an employee to be offered for sale but only if the requirement of sub-paragraph (2C) is met.\n(2C) The consideration at which the shares are required to be offered for sale must be at least equal to—\n(a) the amount of partnership share money applied in acquiring the shares on behalf of the employee, or\n(b) if lower, the market value of the shares at the time they are offered for sale.\n(3) References in the SIP code to the trustees acquiring partnership shares on behalf of an employee include their appropriating to an employee shares already held by them.\n(4) In the SIP code references to an employee’s “salary” are to be read as follows—\n(a) in the case of an individual within the scope of the charge to tax under Part 2 of this Act, they are to be read as references to such of the earnings of the eligible employment—\n(i) as are liable to be paid under deduction of tax under PAYE regulations, after deducting any amounts included by virtue of the benefits code, or\n(ii) as would be liable to be so paid apart from the SIP code;\n(b) in the case of an individual not within the scope of the charge to tax under Part 2 of this Act, they are to be read as references to such of the earnings of the eligible employment as would have fallen within sub-paragraph (i) or (ii) of paragraph (a) if the individual had been within the scope of that charge to tax.\n(5) In sub-paragraph (4) “the eligible employment” means the employment by reference to which the employee is eligible to participate in the plan.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Sch. 2 para. 43(2A) inserted (with effect in accordance with Sch. 2 para. 58 of the amending Act) by Finance Act 2013 (c. 29), Sch. 2 para. 50"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Sch. 2 para. 43(2B)(2C) inserted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 23, 89 (with Sch. 8 paras. 90-96)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2003/1/schedule/2/paragraph/43",
    "retrieved_at": "2026-10-29T09:18:42.395488+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}