This Practice Note looks at how employees can be incentivised using shares in private equity owned companies. It considers the relevance of the company being under the control of another company when determining what type of incentive scheme can be operated, as well as the associated tax implications. The Practice Note then considers the different types of share incentive structure which a private equity backed company might consider implementing, looking at enterprise management incentives (EMI) options, growth shares, partly paid shares, company share option plans (CSOPs), unapproved options and direct share subscriptions. It also looks as the relevance of business asset disposal relief and section 431 elections. Written in partnership with Becky Rees of Parisi Tax LLP.