Employers can design their own employee share schemes, but most use of favourable tax treatment available through the four HM Revenue & Customs-approved schemes: sharesave (SAYE), share incentive plan (Sip), company share option plan (Csop) and enterprise management incentive (EMI). Executive share option plans (including long term incentives – Ltips) are used for very senior employees.
Now 50% owned by its employees.
IFS Proshare research: Employees saved an additional £40 million in 2014.
EXCLUSIVE: Now 100% owned by staff.
Employees will receive 2,500 shares in the firm.
Schemes risk losing tax advantages.
Employers need to be aware that getting changes wrong could result in possible financial penalties.
What tax efficiencies does each benefit attract?
From 6 April, taxation on share option gains will change.