Scheme design and financial considerations (including valuation and accounting)

Scheme design and financial considerations (including valuation and accounting) guidance:

Relationship with accounting As well as share based payments (SBP) accounting for the costs of employees, share schemes usually involve accounting for the issue of new...

Practice Note

A cash settled share based payment (SBP) expense arises when an employee provides services in return for the company accepting a liability or obligation to pay the...

Practice Note

This Practice Note looks at some of the more complex issues associated with the equity settled accounting regime. For a more basic overview of the equity settled...

Practice Note

When a person disposes of an asset and makes a profit that is capital in nature, this has the potential to be a taxable capital gain. It may be possible to avoid a tax...

Practice Note

Entrepreneurs' relief is a capital gains tax (CGT) relief designed to encourage individuals to set up and expand their own businesses. Provided that the conditions are...

Practice Note

Convertible securities are: • employment-related securities (see: What is an employment-related security?) • with the capacity to convert into securities of a different...

Practice Note

This note explains the income tax treatment of convertible securities. The definition of convertible securities is set out in Convertible securities—definition. The basic...

Practice Note

Corporation tax deduction for costs incurred in setting up and operating employee share schemes Costs incurred in setting up and operating an employees’ share scheme may...

Practice Note

Private companies that implement share option schemes will often make use of 'exit-only' options, meaning that share options can only be exercised by participants when...

Practice Note

Why do you need to obtain a CSOP valuation? A valuation of the shares granted under company share option plan (CSOP) options will often be required at different stages of...

Practice Note

Employee share scheme participants and shareholders This note looks at the issues arising on the death of a participant in both HMRC tax-advantaged schemes and various...

Practice Note

This Practice Note describes the rules on the disclosure of tax avoidance schemes (DOTAS) applying to income tax, corporation tax, capital gains tax (CGT) and National...

Practice Note

This Practice Note covers the procedural aspects of the rules on the disclosure of tax avoidance schemes (DOTAS) applying to income tax, corporation tax, capital gains...

Practice Note

What are discretions in employee share schemes? It is common to see contracts include powers for a party to determine a particular matter ‘in its absolute discretion’....

Practice Note

Employers frequently grant equity awards and cash bonuses to incentivise key employees. The first part of this Practice Note focuses on key considerations with awards...

Practice Note

An earn-out is a particular way of structuring the consideration payable for the acquisition of shares in a company (the Target) where at least part of the price is to be...

Practice Note