Employee Share Incentive Arrangements
Employee ownership is encouraged by all political parties and is here to stay, at least in the short to medium term.
This aspect of our service is driven to achieve the most tax efficient arrangements for companies wishing to incentivise their employees and directors. This usually means finding ways of ensuring that employee shareholders or option holders are taxed under the capital gains tax regime, rather then under the PAYE and NIC regime.
Enterprise Management Investment Schemes are becoming more popular to incentivise and retain key members of staff. It is not just a question of harnessing the undoubted tax benefits, but also advising on the implementation and design of those share schemes. These are often used as part of a Management Buy-out and investment arrangements as a company develops over time. We work closely with our employment colleagues to provide an overall package to our clients’ members of staff.
The Government backed system of Employee Shareholder Scheme (“ESS Schemes”) is also proving more popular than commentators had originally envisaged. Under this scheme, employees can benefit from tax free shares in exchange for giving away some of their employment rights. The corporate team have set up schemes for our clients which largely give back those employee rights whilst also allowing staff to retain Employee Shareholder status for tax purposes.
If you would like further information please contact us on 023 8033 4661 or click below to send an email.