The effect of multiple employments on the eligibility requirements of tax-advantaged share plans
The effect of multiple employments on the eligibility requirements of tax-advantaged share plans

The following Share Incentives practice note provides comprehensive and up to date legal information covering:

  • The effect of multiple employments on the eligibility requirements of tax-advantaged share plans
  • Employment in companies in the same group versus employment in unconnected companies
  • EMI schemes
  • CSOPs
  • SAYE schemes
  • SIPs
  • Participation in different tax-advantaged share plans in respect of multiple employments
  • Interaction between EMI schemes and CSOPs
  • Participation in the same type of tax-advantaged share plans in respect of multiple employments
  • EMI schemes
  • More...

Individuals may, at any one time, be employed by more than one employer, usually on a part-time basis for each company. These companies may sit in the same group or may be unconnected.

Participation in numerous unapproved share option plans is generally not problematic, therefore, this note concentrates on examining the effect of such simultaneous employments on an employee's ability to participate in:

  1. enterprise management incentives (EMI) schemes

  2. company share option plans (CSOPs)

  3. share incentive plans (SIPs), and

  4. save as you earn (SAYE) schemes

For more general information on each of these schemes, see Practice Notes:

  1. How EMI schemes work and key features

  2. How CSOPs work and key features

  3. How SAYE schemes work and key features

  4. What is a SIP?

This Practice Note, examines the definitions of connected, group, qualifying subsidiaries, associated and constituent companies for each tax-advantaged share plan and then examines how multiple employments impact the eligibility requirements of the four tax-advantaged share plans.

Employment in companies in the same group versus employment in unconnected companies

Often the implications of multiple employments differs according to whether the employee is employed by:

  1. companies within the same group or which are connected or associated, or

  2. unconnected companies

The definitions of connected, group, qualifying subsidiaries, associated and constituent companies differs for each tax-advantaged share plan. These are examined in their relevant context below.

EMI schemes

In respect of the employment requirements for EMI

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