Enterprise Management Incentive (EMI) options remain the most popular share option scheme for SMEs because of their super-flexibility and tax efficiency.But not all companies can use EMI. If your company employs 250 or more full time employees, or has gross assets exceeding £30m, or...

Our operations team at RM2 can put its collective feet up – all 150 returns have been filed in good time for our clients’ share plans.If you’ve not filed your returns yet for the 2018/19 tax year, you have until 6th July 2019.If you miss the deadline,...

RM2 does the research for the Employee Ownership Top 50, a list of the largest 50 private employee-owned companies in the UK which has been prepared annually since 2014. RM2 publishes the list in a partnership with the Employee Ownership Association (EOA). Key findings:By tracking the changes in...

There has been a slew of entrepreneurs’ relief (ER) cases lately as ER comes under increasing scrutiny in view of the tax lost to HM Treasury. (To recap, ER is a capital gains tax relief which taxes an individual’s qualifying total lifetime gains of...

Amazingly, 28 June 2019 will be the seventh Employee Ownership Day – the first was celebrated on 4 July 2013.Employee ownership has really come on in leaps and bounds in recent years. It’s estimated that there are now around 350 employee owned businesses in the UK,...

Taxation of share optionsIn 2003, employment related shares and share options were made subject to wide sweeping reforms, specifically introduced to address tax avoidance. One such change was the introduction of a law that stated where an option to acquire shares is made available...

Many private companies implement Enterprise Management Incentive ("EMI") share options (and other types of share plan) with the specific intention of sharing sale proceeds with employees if the company is ever sold. Selling a company can be a stressful time for company owners, with acquirers...

In Hunt v HMRC [2019] UKFTT 0210 (TC) (26 March 2019) (Judge Anne Redston), the First Tier Tribunal upheld a decision regarding one of the key tests for Entrepreneurs’ Relief (ER). To recap, at the time of this particular claim, ER secured a 10% capital gains tax...

The recent case of Nosworthy v Instinctif Partners Ltd (2019) UKEAT/0100/18 is not strictly speaking a case regarding employee share schemes but a couple of the themes are pertinent to our arena, particularly where employees have acquired shares following the exercise of share options, or...

On the occasion of its 25th birthday, RM2, the market leading employee share schemes and EOT consulting business, is converting to full employee ownership as the present owners transfer their entire shareholding to an Employee Ownership Trust. Since 1994, RM2 has helped private companies set up...

The symposium is an annual opportunity for share scheme experts to share ideas, celebrate employee share schemes and (in the friendliest way) occasionally butt heads.I was fascinated to see three themes emerge from this years’ talks:Are employee share schemes a mere financial incentive or a...

Approaching the end of the tax year in the world of share plans is a bit like Christmas, there are 2 types of shopper, those who buy their presents in good time, and those who rush out on Christmas Eve.RM2 are definatley in the former...

On 14 February 2019, one of our directors Nigel Mason spoke with Deb Oxley OBE, chief executive of the Employee Ownership Association ("EOA"), at the annual Jack Fitzpatrick Memorial Lecture in Dublin, organised by IPSA, the Irish Proshare Association. Jack Fitzpatrick was a lifelong advocate...

At RM2 we have occasionally had cause to wonder whether HM Revenue & Customs (“HMRC”) actually read the Enterprise Management Incentive valuation submissions that we make on behalf of clients.We are, of course, aware that HMRC view Enterprise Management Incentive (“EMI”) valuations as low risk (and...

Zero tax on an employee share plan, the Share Incentive Plan ("SIP") sounds too good to be true. Even the Enterprise Management Incentive ("EMI") only delivers a 10% capital gains tax rate to participants – and that’s after employees have paid something to exercise their options.ZERO...