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.
For shares issued through share incentive plan.
To reinforce link between engagement and reward.
23,000 staff to benefit from sharesave plans.
Following new ownership deal.
Now 50% owned by its employees.
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.