About Share Incentives
The world of share incentives and employee ownership is currently one of the hottest topics and a huge priority for the current government. The law is constantly changing and companies are regularly having to grapple with new legislation, new guidance and new ideas. In such a complex, ever-changing area, where the repercussions of getting it wrong can be unforgiving, companies need to understand the law and implement it correctly.
Corporate governance content
Reports on executive pay are regularly in the news. We include subtopics on corporate governance, remuneration issues for financial services firms and a comparison of UK Corporate Governance remuneration principles.
Disguised remuneration
Get updated documents and a Practice Note examining common disguised remuneration scenarios in share schemes. There’s nothing like this elsewhere.
Key Share Incentives developments
Keeping up-to-date on developments naturally important. We produce a weekly Share Incentives highlights report and email it straight to subscribers' inboxes. It's also posted on our news carousel.
Topics We Cover
Our Share Incentives Experts
Nicky Griffin
Stephen Woodhouse
David Pett
William Franklin
David Cohen
Latest Share Incentives News
This week's edition of Share Incentives weekly highlights includes HMRC’s publication of the latest minutes by the Share Schemes Forum....
This week's edition of Share Incentives weekly highlights includes (1) the announcement by ISS Governance of its new 2025 benchmark policy updates,...
This week's edition of Share Incentives weekly highlights includes (1) in relation to employee benefit trusts, the cases of JTC Employer Solutions...
This week's edition of Share Incentives weekly highlights includes (1) an update on the progress of Finance Bill 2025 and the National Insurance...
This week's edition of Share Incentives weekly highlights includes (1) the CIOT’s response to the employee ownership trust provisions of the draft...
Latest Share Incentives Practice Notes
Money Laundering Regulations 2017—impact on trusteesBackground to Money Laundering Regulations 2017The Money Laundering, Terrorist Financing and...
Trust Registration Service (TRS)—trusts excluded from registrationHMRC's online Trust Registration Service (TRS) was established in order to implement...
Trust Registration Service (TRS) Background to the Trust Registration Service (TRS)HMRC's online Trust Registration Service (TRS) was designed to...
Trust Registration Service (TRS)—table of registration requirements and deadlinesThis Practice Note sets out when there is an obligation to register a...
How employment income is taxed—concept of general earningsFORTHCOMING CHANGE: At Autumn Budget 2024, the Labour government confirmed that it will...
Latest Share Incentives Precedents
Acknowledgment of changes to terms and conditions of employment to implement salary sacrifices[insert date of letter]This document summarises certain...
Letter from company inviting employees to join salary sacrifice[Insert name and address of employee][For use only where the employee is foregoing...
Letter from company to acknowledge salary sacrifice[insert date of letter]To: [insert name of employee]From: [insert name of person in charge of...
Salary sacrifice scheme—employee FAQs[For use only where the employee is foregoing salary for the following benefits that retain Tax and/or NICs...
HMRC salary sacrifice clearance letterWealthy TeamHM Revenue & CustomsBX9 1BN[insert date of letter][insert company PAYE reference]Dear [insert...
Latest Share Incentives Q&As
Featured Share Incentives content
How do I contact HMRC with a share schemes related query?
How do I contact HMRC with a share schemes related query?HMRC consists of specialist departments dealing with specific areas of employment related...
Malus and clawback
Malus and clawbackThe use of malus and clawbackThe concept of withholding or even recovering value from executives if a material adverse event occurs...
Tax implications of salary sacrifice
Tax implications of salary sacrificeCoronavirus (COVID-19): As part of a series of measures put in place to stop the spread of coronavirus (COVID-19),...
Corporation tax relief and employee share schemes
Corporation tax relief and employee share schemesCorporation tax deduction for costs incurred in setting up and operating employee share schemesCosts...
Underwater share options
Underwater share optionsWhat is an underwater share option?'Underwater option' is the term used to describe a share option (granted under any share...
What happens to restricted stock units or stock options that have vested during an employee's notice period (assuming the employee is still employed at the vesting date)?
Comparison of UK and US share incentive arrangements
Comparison of UK and US share incentive arrangementsCompanies in both the US and the UK have a long history of involving employees in equity...
Nil paid shares and partly paid shares—practical considerations
Nil paid shares and partly paid shares—practical considerationsWhat are nil paid shares and partly paid shares?When shares are issued, their...
Growth shares—practical examples and comparisons with options
Growth shares—practical examples and comparisons with optionsWhat are growth shares?Growth shares, also known as value shares or hurdle shares, are a...
What is a long-term incentive plan?
What is a long-term incentive plan?A long-term incentive plan (LTIP) is a term that is commonly used among listed companies to describe executive...
Unapproved share options—tax treatment
Unapproved share options—tax treatmentSpecific income tax rules (in sections 471–487 of the Income Tax (Earnings and Pensions) Act 2003 (Part 7,...
EMI—HMRC annual return
EMI—HMRC annual returnThis Practice Note details the following:•the EMI annual return form•the pre-registration and timing of completion of the annual...
Employee share schemes—dealing with leavers
Employee share schemes—dealing with leaversWhat are leavers?Departing individuals are known generically as ‘leavers’ but the reason behind the...
An introduction to deferred share bonus plans
An introduction to deferred share bonus plansDeferred share bonus: key elementsDeferred share bonus plans are typically constituted by the following...
Implementing share plans—ways to manage dilution of existing shareholders
Implementing share plans—ways to manage dilution of existing shareholdersWhat is share dilution?Share dilution happens when a company issues...
Notice of exercise of option
Notice of exercise of optionThe Company Secretary[insert date of letter][insert name of company who granted the option] (Company)[[insert address of...
Understanding US non-qualified deferred compensation arrangements and Internal Revenue Code Section 409A
Understanding US non-qualified deferred compensation arrangements and Internal Revenue Code Section 409ARelevance of non-qualified deferred...
What is a SIP?
What is a SIP?This Practice Note provides an introduction to the HMRC tax-advantaged share incentive plan (SIP). It provides a summary of:•the types...
Associated legal terms
Deferred share bonus plan
A deferred share bonus plan is an employee share incentive scheme where some/all of the employee’s bonus is paid in shares instead of cash, and payment of the shares is deferred for a specified period, during which the participant must remain employed in order to receive the shares.
Financial Reporting Council (FRC)
The UK’s independent regulator responsible for promoting high quality corporate governance, financial reporting, audit and actuarial practice. The FRC maintains the UKCG Code, as well as a number of other codes and standards.
Shares and Assets Valuations (SAV)
The Shares and Assets Valuations (SAV) team are a specialist area of HM Revenue and Customs (HMRC) who value the following for tax purposes, amongst other things: unquoted shares, intangible assets, foreign shares, foreign residential property, bloodstock and chattels (such as antiques, art and jewellery).
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