Income Tax (Earnings and Pensions) Act 2003

Deductions from salary

This section has no associated Explanatory Notes

45(1)The plan must provide for a partnership share agreement to be given effect by deductions from the employee’s salary.

(2)Amounts so deducted are referred to in the SIP code as “partnership share money”.

(3)The partnership share agreement must specify—

(a)what amounts are to be deducted, and

(b)at what intervals;

but this does not prevent the employee and the company agreeing to vary those amounts or intervals.

(4)For the purposes of sub-paragraph (3)(a) the agreement may specify a percentage of the employee’s salary.

(5)The plan must require the employer company to calculate the amounts and intervals having regard to paragraph 46 (maximum amount of deductions from salary).

(6)In sub-paragraph (5) “the employer company” means the company by reference to which the employee meets the employment requirement in relation to the plan.