If the Labour Party wins the election, their manifesto has promised the removal of entrepreneurs’ relief (ER), which provides a 10% capital gains tax (CGT) rate on the sale of shares in certain circumstances. (It’s probably worth nothing that the Treasury is already grumbling...
When you’re setting up a share scheme for employees, one of the first questions you’ll want to ask is whether you should offer direct shares or share options. What are the key differences between shares and options? A quick summary is set out below: A Share gives...
Fast growing entrepreneurial business that implement Enterprise Management Incentive (“EMI”) share options are very frequently the same businesses looking for external funding from venture capitalists (“VC”), or seeking investment from individuals under the tax-advantaged Enterprise Investment Scheme (“EIS”). But how do these work together? Here are...
In certain circumstances, making changes to an existing Enterprise Management Incentive option can culminate in the removal of all the tax benefits usually attaching to EMI. An EMI option is granted by way of an option agreement – so it forms a contract between the...
Companies that wish to grant Enterprise Management Incentive (“EMI”) share options need to meet various tests to qualify for the tax advantages – for example, companies need have fewer than 250 full time equivalent employees and gross assets of less than £30m.Companies also need to...
Background RM2 is an employee owned consultancy specialising in the design, implementation and administration of all types of employee share plan arrangements. Our clients include private companies and those listed on AIM or similar markets. Form more information please visit our website at www.rm2.co.uk. We...
When we begin to speak with clients about employee share plans, one of the questions we are consistently asked is, “what size should the award be”? This is, of course, an extremely important question, but unfortunately not one which is necessarily very simple to answer. There are...
The directors and staff of RM2 are delighted to report that, following a full quality audit, we have retained our ISO 9001:2015 accreditation in quality management and system processes. ISO 9001:2015 is the leading internationally recognised quality standard for business management. Continually meeting the demanding requirements of...
Fast growing companies need to attract top talent to achieve success. Increasingly, director level hires are actively seeking an equity stake in the business, especially if they’re taking a bit of a risk in moving to a smaller business and taking a hit on basic remuneration. Enterprise...
A company with a strong business idea and management wants to upscale its operations and seeks institutional investors to do so. Not uncommon and nor is the fact that there may well need to be a number of rounds of investment and a lot of...
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...
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 £10m...
Taxation of share options In 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 by...
