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.
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.
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.
Entrepreneursí Relief has the potential to reduce the amount of the Capital Gains Tax on a disposal of qualifying business assets.
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.
Under a Joint Share Ownership Plan (JSOP), the employee (participant) acquires shares in the employing company jointly with another shareholder (joint owner).
An Approved Company Share option Plan provides a tax efficient and highly flexible way to reward selected employees, managers and directors.
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).
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.
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.
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.