Employee Share Schemes provides a comprehensive examination of the taxation, legal and compliance issues concerning the acquisition of shares by employees in their employer company, whether public or private.
Employees' share schemes remain one of the most popular forms of rewarding and incentivising a company's employees. The Government continues to believe that productivity will be increased by encouraging employee participation, which is evidenced by its commitment to public sector 'mutualisations' and, in the private sector, through such increased participation in employee share plans.
With a detailed review of the key issues and techniques involved in establishing and operating share schemes, this practical guide includes worked examples to illustrate complex calculations and a useful series of precedents to assist with implementing and understanding the operation of each scheme.
The clear advice given on the most common share schemes will help to ensure that plan rules are fully compliant with legislation.
The ninth edition has been updated in line with the following developments:
- Revisions to reflect UK legislation following BREXIT (Market Abuse Regulation, Prospectus Regulation etc)
- Updates to the Company Share Option Plan to increase participation limits and to remove requirements in relation to types of share which can be used (and update precedent rules) - Finance (No 2) Bill 2023
- Updates to EMI legislation to remove requirements in relation to summary of restrictions in grant documentation and need for employee working time declaration - Finance (No 2) Bill 2023
- Changes to annual reporting obligations
- New guidance from the Investment Association and other institutional investor 2023 guidance
- HMRC updated guidance on discretions within EMI options
- SAYE bonus rate changes (expected)
- CGT allowance, income tax rates, dividend tax rates and NIC rates changes
Read an extract of Employee Share Schemes
Table of Contents
Chapter 1: Introduction Chapter 2: Types of Scheme Available Chapter 3: Institutional Investor Guidelines and the Corporate Governance Code Chapter 4: Establishment and Operation of Schemes Chapter 5: Common Features of Tax-advantaged Schemes Appendix 5A: Recognised Stock Exchanges Chapter 6: Long-term Incentive Plans Appendix 6A: Performance Share Awards Appendix 6B: Deferred Share Awards Appendix 6C: Matching Shares Awards Chapter 7: Discretionary Share Option Schemes Appendix 7A: Discretionary Share Option Scheme Rules Chapter 8: Enterprise Management Incentives Appendix 8A: Enterprise Management Incentive Agreement Chapter 9: Restricted Shares, Convertible Shares and Other Chargeable Events Chapter 10: Pay As You Earn and National Insurance Chapter 11: Share Incentive Plans for SIPs – General Chapter 12: SIPs – Free Shares Chapter 13: SIPs – Partnership Shares Chapter 14: SIPs – Matching Shares Appendix 14A: Share Incentive Plan Chapter 15: Savings-related Share Option Schemes Appendix 15A: Savings-related Share Option Scheme Chapter 16: Takeovers, Reconstructions, Demergers and Dividends Chapter 17: Variations of Share Capital Chapter 18: Accounting and the Statutory Corporation Tax Deduction Chapter 19: EBTs and using Existing Shares Chapter 20: ISAs and Pension Plans Chapter 21: Administration, Tax Returns and other Reporting Obligations Chapter 22: Internationally Mobile Employees Chapter 23: Cross-Border Share Plans