Blog/Latest news

Topical discussions about employee ownership and employee share plans

Fast growing entrepreneurial businesses that implement Enterprise Management Incentive (EMI) share options are very frequently the same businesses looking for external funding from venture capitalists, or seeking investment from individuals under the tax-advantaged Enterprise Investment Scheme (EIS). But how do these work together? Here are five...

Do the shareholders and the Emloyee Ownership Trust company need independent valuations?The trust (or trustee on behalf of the trust) must not pay more than a fair value for the company.  The fair value is established by an independent valuation. RM2 do not believeit should...

In spite of the challenges of the pandemic, 2020 was a bumper year for new Employee Ownership Trusts (EOTs), according to flash results of the EOT Survey, maintained by RM2 for the Employee Ownership Association. There were 104 new EOTs established in 2020, just one short...

Suddenly it’s December … Where did this exceptional year go?If you had big plans to put in place a share plan for employees this year, but you’ve not quite got around to it you could start working on a 2021 New Year’s Resolution now &...

The Office for Tax Simplification’s (OTS) most recent report doesn’t just look at tax simplification, but includes policy recommendations relating to capital gains tax (CGT) - an interesting extension of the Treasury’s usual instructions to the OTS. Some of the recommendations, if implemented, could create...

Share plan administration is never easy, even if you are a small company with only a couple of people participating in your plan. This article looks at some of the common problems facing companies who are looking to independently manage their schemes. Who's in charge around...

rhp is now an EOT! rhp is pleased to announce that we have become an Employee Ownership Trust (EOT), meaning that we are now wholly owned by all our employees. A strong collaborative culture has always been a key aspect of the way we run our...

We hope you enjoyed our Webinar on 7th October. There were lots of questions asked and in case you missed them here are the answers: 1. For staff who currently have shares or share options, they could be 'participators' and thereby excluded from being beneficiaries of...

There is a strong argument for issuing shares to employees or granting them share options during the current Covid-19 pandemic, as the value of shares may be relatively low. However, there are practical difficulties regarding share valuation to consider.For tax-advantaged share plans, the valuation methodology...

The RM2 Partnership Limited 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. We have a vacancy for a Share Plans Assistant...

It goes without saying that 2020 will be a memorable year. A country in lockdown resulting in businesses feeling the effects for some time to come. The UK has entered into recession for the first time in 11 years. There is no doubt that there...

Rumours have been circulating in the UK press about an increase in capital gain tax rates in late 2020. We consider the implications of these rumours for EOTs (Employee Ownership Trusts) and the attractive capital gains tax relief presently available for business owners. What are the rumours? TheTimes reported...

The government has recognised the Share Incentive Plan (SIP) is an excellent starting point for employee ownership, with its almost unbelievable tax efficiency, huge flexibility and straightforward implementation. Key benefits of a SIP In summary, here are the key benefits of a SIP for a company looking...

We are excited about the potential for Employee Ownership Trusts (EOT). We’ve completed 40 so far covering 5,700 employees and with an aggregate value of £500 million and we have many more in the pipeline. Despite the economic challenges posed by Covid-19, we...

There has been recent speculation in the press regarding possible changes to capital gains tax rates (CGT), which are far lower when compared with income tax rates, and the possible withdrawal of entrepreneurs’ relief (ER), which taxes qualifying gains to a CGT rate of 10%...