This Practice Note examines the accounting treatment of shares and trusts (including employee benefit trusts (EBTs)).
This Practice Note introduces the concept of the cash settled share based payments accounting regime including details of scenarios where the treatment is unclear.
This Practice Note provides an enhanced analysis of the equity-settled share-based payments accounting regime, including an introduction into option pricing theories such as the Black Scholes and Monte Carlo models. It also examines the process of accounting in groups, exclusions from share-based payments and the accounting treatment of cash cancellations, growth shares, joint share ownership plans (JSOPs) and acquisitions of companies.
This Practice Note examines the employee shareholder status (also known as shares for rights) pursuant to which, until December 2016, tax reliefs were offered to participants in return for surrendering various employment rights. The note examines the tax reliefs that were offered, the requirement to value the shares, the employment rights which had to be surrendered and the protection that was afforded to the employees who entered into this regime. Finally, the note examines the company law implications that arose in relation to the employee shareholder status, the required documentation and its use in practice. As of 1 December 2016, no new employee shareholder status arrangements can be entered into and still benefit from the tax-advantaged status. Any employee shareholder share arrangements implemented prior to this date remain unaffected. This document has been archived and is no longer maintained.
This Practice Note seeks to introduce the complex topic of accounting for share schemes. It examines the meaning of some of the most common accounting terms associated with share schemes such as share-based payments (SBP) and distinguishes between equity settled SBPs and cash-settled SBPs. It also introduces the concept of the UK and international accounting standards. This Practice Note is written in partnership with William Franklin of Pett Franklin LLP.
This Practice Note introduces the concept of joint share ownership plans (JSOPs). It details the commercial advantages of JSOPs and introduces the nature and structure of JSOP awards and their tax treatment.
This practice note seeks to compare jointly owned awards (JOAs) granted pursuant to jointly owned share plans (JSOPs) with unapproved share options, long-term incentive plans and growth/value shares. This Practice Note is written in conjunction with Stephen Woodhouse and William Franklin of Pett Franklin.
This Practice Note is a summary of the main steps that are required in order to establish and adopt a joint share ownership plan (JSOP) and grant awards pursuant to it. It examines the steps involved and the required documentation.
There are various different ways in which a trustee of an employee benefit trust (EBT) may be funded in order to acquire its interest in a jointly owned share acquired pursuant to a joint share ownership plan (JSOP). This practice note examines the various approaches to funding the trustee of the EBT and the consequences of each approach. It also considers the terms on which the respective joint interests are held, and outlines the current market norms in respect of such terms.
There is no specific statutory regime setting out the tax treatment of jointly owned shares acquired pursuant to joint share ownership plans (JSOPs). Rather, the tax treatment follows on from the nature of the interests being created and the application of the tax legislation relating to employment related securities. This Practice Note summarises the tax treatment (including income tax, National Insurance contributions, capital gains tax, corporation tax and stamp duty) resulting from the acquisition of an employee’s interest in jointly owned shares, the subsequent realisation of value and the exercise of call options. This Practice Note is written in partnership with Stephen Woodhouse and William Franklin of Pett Franklin.
This Practice Note introduces the accounting concept of equity-settled share based payments. It examines the measurement and timing of fair values in share schemes accounting (including the spreading of fair value over accounting periods, impact of performance and vesting conditions and trueing up) and the accounting treatment of cancelling and modifying awards under employee share incentive arrangements. This Practice Note is written in partnership with William Franklin of Pett Franklin LLP.
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