Share Scheme Fact Sheets

The RM2 Partnership publishes fact sheets on all the principal employee share schemes.  Each sheet is one side of A4.  Download or view them below, or call us now on 0208 949 5522 for share scheme advice or a free consultation.

When you select an RM2 fact sheet you will be asked for your email address once only - you can then download as many as you wish.  Note: your privacy is important to us; we will never pass on your personal details.  View our privacy policy.

RM2 factsheets on employee share schemes

The Enterprise Management Incentive

The EMI, introduced in the Finance Act 2000 is a highly tax efficient share option plan. Effectively the employee is granted the right to acquire a share in the future at a pre-agreed price.

The Share Incentive Plan

SIPs are highly flexible and a tax efficient method of providing incentives in the form of company shares. Find out the three ways in which the incentive can be provided.

The Deferred Share Purchase Plan

A DSPP can provide companies with the opportunity to offer share participation in a tax-efficient manner, as gains are treated as capital gains and not as a benefit of employment.

Entrepreneurs’ Relief

Entrepreneurs’ Relief has the potential to reduce the amount of the Capital Gains Tax on a disposal of qualifying business assets.

Employee Benefit Trusts

The RM2 Partnership has an updated Employee Benefit Trusts factsheet post the Finance Act 2011. RM2 can design and administer EBTs as well as act as Trustee.

Joint Share Ownership Plans

Under a Joint Share Ownership Plan (JSOP), the employee (participant) acquires shares in the employing company jointly with another shareholder (joint owner).

Approved Company Share Option Plans

An Approved Company Share option Plan provides a tax efficient and highly flexible way to reward selected employees, managers and directors.

Unapproved Share Option Plans

Unless specific tax rules apply, any share-based benefit passing from an employer to an employee will normally be subject to income tax at the employee's highest rate and possibly also to National Insurance Contributions (NICs).

Long-Term Incentive Plans

The term Long-Term Incentive Plan tends to be applied to any plan which is not short term in nature, in general practice it covers arrangements where shares are released to selected senior executives over a period of time.

The Save-As-You-Earn Share Option Scheme

Approved SAYE Share Option Schemes are a highly tax efficient method for both quoted and unquoted companies to transfer value to employees. The employees are encouraged to stay with their employer while their benefits mature.

Share Plan Administration Overview

Employee Share Schemes are complicated and mistakes made by inexperienced administrators can cost companies dearly.


Employee Share Schemes: A Guide for Directors

2012/13 Edition - With glossary, indexed and cross-referenced.   

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