For some business owners, selling all their shares to an Employee Ownership Trust (EOT) is the complete solution to their succession worries. Key benefits of selling to an EOT Sellers pay no capital gains tax if they sell a majority shareholding to an EOT. This means that...
Many businesses understand the importance of incentivising their staff, and will often invest significant time (and money) in designing and setting up an employee share plan such as Enterprise Management Incentives (EMI). An EMI plan can play a central part in attracting, motivating and retaining staff. ...
Many private company business owners like the idea of incentivising employees via a share scheme. Advantages include attracting and keeping key talent in a competitive market. Using equity can also be an attractive alternative when cash is tight, and salary requirements are high. Founders who’ve built...
The Company Share Option Plan or CSOP offers generous tax reliefs, but then so can an Enterprise Management Incentive Scheme if your company qualifies, so which is better? We take a look at the key features of both to help you decide which might be...
Does my company really need an EMI valuation agreement from HM Revenue & Customs (HMRC) before granting EMI options? That’s a reasonable question, especially for companies working with limited budgets. It is true that it is not a legal requirement for an EMI valuation of the...
If you’re running an employee share plan, especially if you’re setting up a scheme for the first time, there are some trip hazards that you may not be aware of. These may vary depending on the share plan you’re using. Check these points out to...
As summer holidays come to an end, business owners often start thinking about getting an employee share plan in place for a New Year launch. With that in mind, it feels like a good time to go back to basics and think about the first...
Government has published draft legislation to extend the time limit for notification of the grant of EMI options. Currently, companies must notify HM Revenue & Customs of an EMI option grant within 92 days of the date of grant. This limit will be extended for...
Contrary to popular belief, us share plan lawyers don’t really like making things complicated just for the sake of it. So over the past couple of years, we’ve been delighted that the powers that be have taken the time to consider how tax-advantaged employee share schemes...
Companies with employee share plans in place have until Tuesday 6 July to file their annual returns with HM Revenue & Customs on their Employment Related Securities portal. If you have granted options to your employees, or given them shares, or let them buy shares –...
Many private companies use employee share option plans, including Enterprise Management Incentives (EMI) and Company Share Option Plan (CSOP), to deliver a reward to employees when the company is sold. If you’re considering selling your company, it’s important to make sure your share plan is in...
Selling your business to an Employee Ownership Trust (EOT) doesn’t necessarily mean that the commercial operation of the business will change significantly after transition. Of course, the company will still need to operate profitably, particularly if you’re still going to be paid out of post-tax...
The end of the tax year means that it’s time to make sure all your employee share plans information is up to date. If you’ve got an employee share scheme, you’ll need to file a return on HMRC’s Employment Related Securities portal by 6 July...
It’s crucial for any company to retain their staff members, ensuring that the most talented employees stay for the long term, as opposed to moving on. Why retention is important This isn’t just about being kind to employees. Keeping your employees for a longer period can...
Jeremy Hunt’s spring budget made a couple of surprise announcements about employee share schemes, and it’s largely good news for companies with Enterprise Management Incentive (EMI) schemes because it should make them simpler to put in place and administer. Changes to EMI Easier registration of the option...
