Transitioning to an Employee Ownership Trust (“EOT”) can be the perfect solution for smaller family-owned businesses looking at succession planning. However, there is a specific qualifying point that occasionally presents an issue for these types of businesses. This is known as the...
HMRC have introduced some minor changes to the end of year share scheme return templates to take effect from 6 April 2023. The intention of the changes are to improve the quality of the data HMRC receive and to achieve greater consistency in reporting. The changes...
We recently blogged on HMRC’s update on the use of discretion in relation to the exercise of EMI share options (HMRC publish guidance on exercise of discretion in relation to EMI options - The RM2 Partnership). Lots of companies want to make the most of...
Over the last six months RM2 have completed two confidential Employee Ownership Trust (“EOT”) transactions in the motor vehicle retailing sector. In a sector keen on “new models” these clients were drawn to the relatively new M&A model of EOT’s (established in legislation in 2004 and...
Managing any Employee Share Plan and carrying out the administration can be a huge task and can get on top of your already hectic work life. Share plan administration can even be tough on a plan consisting of a couple of individuals as the same...
Further to our blog earlier in the year regarding the Company Share Option Plan (“CSOP”) review (mentioned in the Spring Statement 2022), RM2 are pleased that the Government announced as part of the “mini budget” on 23 September 2022 that it is expanding the availability...
During the COVID pandemic, HMRC extended the period of time for which an agreed valuation of shares to be used for Enterprise Management Incentive “EMI” options remained valid (assuming no material changes occurred during the meantime) from 90 days to 120 days. However, on 14...
RM2 acts for companies in a wide variety of sectors. However, recruitment companies will often come to us to look for ways to structure equity incentives for their employees. These include executive, specialist IT & technical, property, tax and company secretarial, graduate and cross-sector recruitment. Recruitment...
So the government concluded in the recent Spring Statement that the current Enterprise Management Incentive scheme (“EMI”) remains effective and appropriately targeted. Hmmm….. – most advisers would agree that the government should have had more appetite for change and actually attempted to reduce some of...
An Employee Ownership Trust (EOT) transaction is a key and exciting step on the employee ownership journey but is a long way from the ultimate destination. Exemplary governance and employee involvement are key to continued growth and to maximising employee ownership’s contribution to the UK...
Further guidance on the use of directors’ discretions with particular reference to Enterprise Management Incentives (EMI) is, in RM2’s opinion, long overdue. One of the biggest attractions of EMI options for private companies is the flexibility they offer. For example, while other tax advantaged employee share...
RM2 is delighted to welcome John Dormer as our new Share Incentives Director. John will head up our share schemes team, with Sarah Anderson stepping back as director as John takes up the reins! John brings with him many years of share plans experience, most recently...
HMRC announced that its Trust Registration Service (TRS) was open for non-taxable trust registrations with effect from 1 September 2021. Historically, it may not have been necessary to register an Employee Ownership Trust (EOT) using the TRS if it was not subject to a tax liability....
Employee Benefit Trusts (EBTs) can be a useful part of employee share ownership plans, particularly for privately held companies. If you’re considering an EBT as part of your employee share scheme, it’s a good idea to understand how they work, what they can be used...
RM2 was interested to read about the views of the Chartered Institute of Taxation (CIOT) on the use of Employee Ownership Trusts (EOTs) as vehicles for tax avoidance in their pre-budget submission, as reported in The ESOP Centre’s newspad. CIOT have suggested that EOTs are, in...
