What is a Deferred Share Purchase Plan (DSPP)?

A DSPP lets participants acquire shares immediately but defer payment for them, which makes the shares more affordable. Because they hold the shares from the outset, participants can benefit from dividends and from Capital Gains Tax treatment on any eventual disposal.

It is a flexible plan, and one of the few that works for individuals without formal employment status — contractors and non-executive directors, for example. It does carry real financial risk for the participant, since payment is required regardless of what happens to the share value.

Read more about DSPPs.