Archived: This Precedent is for illustrative purposes only as it reflects the position up to 1 December 2016. The ability to offer tax-favoured employee shareholder shares or ESS (commonly used in private equity company arrangements) has now been removed. The government announced in the Autumn Statement 2016, the removal of the following reliefs in relation to ESS shares: • the income tax and NICs relief which applies to the first £2,000 worth of employee shareholder shares received by an individual • the capital gains tax exemption in respect of all or a portion of the ESS shares, and • the provision which ensures that, when a company buys employee shareholder shares back from an employee shareholder, the consideration is not a distribution in the shareholder’s hands The removal of reliefs applies to any employer shareholder agreements made on or after 1 December 2016. However, any individual who received independent advice regarding entering into an employer shareholder agreement before 23 November 2016 still had the opportunity to enter into the agreement before