The RM2 Partnership publish 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 020 8949 5522 for share scheme advice or a free consultation.
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.
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.
An Flowering Share Purchase Plan can provide companies with the opportunity to offer share participation in a tax efficient manner.
Information regarding the 'Employee Shareholder Status' detailing how new and existing employees can sacrifice some their working rights for shares in their company.
Employee share schemes are used to help recruit, retain and motivate staff and further corporate objectives. However, if the arrangements are to be effective then the potential benefits must be properly understood and appreciated by the participants.
There are many occasions when the shares of an unquoted company need to be valued. These include deferred consideration, company restructurings and the issue of shares or options under employee share schemes.
Entrepreneurs' Relief potentially allows individuals and some trustees to claim relief on qualifying gains made.
Ensuring continuing compliance is a specialist task. The RM2 Partnership is a leading specialist in this field. We offer a specialist Health Check service which covers both legislative and operational compliance.
Accounting standards (FRS20 and IFRS 2 Share-based Payment) now require companies to show the value of incentives offered in their own shares as an expense against profits. Such incentives can include share options, or the award of shares on advantageous terms.