Scheme design and financial considerations (including valuation and accounting)

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Share Incentives weekly highlights—25 February 2021

The following Share Incentives news provides comprehensive and up to date legal information on Share Incentives weekly highlights—25 February 2021

Entrepreneurs’ relief and trusts (HMRC v The Quentin Skinner 2005 Settlement L and others)

The following Share Incentives news provides comprehensive and up to date legal information on Entrepreneurs’ relief and trusts (HMRC v The Quentin Skinner 2005 Settlement L and others)

Share Incentives weekly highlights—18 February 2021

The following Share Incentives news provides comprehensive and up to date legal information on Share Incentives weekly highlights—18 February 2021

Share Incentives weekly highlights—11 February 2021

The following Share Incentives news provides comprehensive and up to date legal information on Share Incentives weekly highlights—11 February 2021

Featured Share Incentives content

Directors’ remuneration

Company directors are not, by virtue only of their office as director, automatically entitled under company law to remuneration for services as a...

How CSOPs work and key features

This Practice Note covers the following topics in high level detail:•what are CSOPs?•the law governing CSOP options•the eligibility...

Unapproved share options

What are unapproved share options?Share options are rights to acquire shares which can be exercised when certain conditions have been met (such as the...

When is an SAYE scheme appropriate?

This Practice Note covers the following topics:•attractions of save as you earn (SAYE) schemes•can the company qualify to operate an SAYE...

Practice notes

Financial Conduct Authority—Principles for Businesses (PRIN)

This Practice Note explains the Principles for Businesses (PRIN) set down by the Financial Conduct Authority (FCA). The Principles form part of the...

9th Nov

Practice notes

Introduction to retained EU law

This Practice Note provides an introduction to retained EU law, which is an entirely new legal concept introduced to UK domestic law in preparation...

9th Nov

Brexit

Practice notes

FATCA in the UK—the UK:US Intergovernmental Agreement: an outline

Coronavirus (COVID-19): HMRC has stated in its International Manual that if a financial institution cannot meet the FATCA reporting deadline of 31 May...

Produced in partnership with Ali Kazimi and Chris Orchard of Hansuke Consulting Limited 12th Jan

In-house

Practice notes

Nil paid and partly paid shares—tax treatment

Overview of nil paid and partly paid sharesThe opportunity to subscribe for or purchase shares nil or partly paid has been and continues to be a...

Produced in partnership with Simon Adams of RSM UK Tax and Accounting Limited 12th Jan

Practice notes

The Quoted Companies Alliance (QCA) Corporate Governance Code

The Quoted Companies Alliance (QCA) is an independent membership organisation that champions the interests of small to mid-sized quoted companies. One...

9th Nov

Practice notes

Comparison of UK and US share incentive arrangements

Companies in both the US and the UK have a long history of involving employees in equity ownership, and both countries have provided tax breaks and...

Produced in partnership with Jonathan Fletcher Rogers of Addleshaw Goddard 12th Jan

Practice notes

Growth shares—practical examples and comparisons with options

What are growth shares?Growth shares, also known as value shares or hurdle shares, are a specially constituted class of shares which have restricted...

9th Nov

Practice notes

Long-term incentive plans—income tax and NICs treatment

Types of LTIP awardsThe most common type of awards that can be made under a long-term incentive plan (LTIP) include:•conditional share awards (which...

Produced in partnership with Jeremy Edwards of Baker McKenzie 12th Jan

Practice notes

Unapproved share options—tax treatment

Specific income tax rules (in sections 471–487 of the Income Tax (Earnings and Pensions) Act 2003 (Part 7, Chapter 5) (ITEPA 2003)) apply to...

9th Nov

Most recent Scheme design and financial considerations (including valuation and accounting) content

Practice notes

Share plan implementation process

The following steps are key to the implementation of a new share incentive arrangement:•creation of a project plan (including design)•obtaining key...

Produced in partnership with Renu Birla 29th Jan

Practice notes

Share buybacks—a quick guide

A limited company may buy back shares in itself, if certain conditions set out in the Companies Act 2006 (CA 2006) are met. This is known as a share...

27th Jan

Practice notes

Executing documents—initial considerations

This Practice Note summarises the basic considerations when executing all documents and links to associated guidance. Failure to consider these basic...

21st Jan

Practice notes

How employment income is taxed—concept of general earnings

The UK has a comprehensive code for the taxation of employment income. This Practice Note deals with the basic principles of income tax on employment...

18th Jan

Practice notes

Securities disposed of for more than market value

This note deals with the specific rules contained within sections 446X–446Z of Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003 ) (Part 7,...

15th Jan

Practice notes

Share options settled by an individual shareholder

Share options are an enforceable right for an employee to acquire shares at a given price, subject to meeting pre-determined conditions. The share...

Produced in partnership with Will Cookson of Spiral Sky Limited 15th Jan

Practice notes

Business asset disposal relief (previously entrepreneurs' relief) and enterprise management incentives (EMI) schemes

Business asset disposal reliefBusiness asset disposal relief (BADR), is a capital gains tax (CGT) relief designed to encourage individuals to set up...

15th Jan

Practice notes

Incentivising partners in a partnership structure

IntroductionPartnerships of all sizes often struggle to devise a remuneration structure for their partners that is fair, rewards the 'right'...

Produced in partnership with Tony Williams 15th Jan

Practice notes

PAYE implications of employment-related securities

Pay as you earn (PAYE) is the mechanism by which income tax (and National Insurance contributions (NICs) and certain other statutory deductions) must...

15th Jan

Practice notes

NICs—employers' recovery from employees—general prohibition and specific exceptions

There are currently seven different classes of National Insurance contributions (NICs). The type paid depends on the individual's employment status,...

15th Jan

Practice notes

Notional payments not made good—the section 222 charge

The income tax charges associated with employment-related securities and securities options typically arise upon acquisition of securities, or because...

15th Jan

Practice notes

Disclosure of tax avoidance schemes—procedure

FORTHCOMING CHANGE: Finance Bill 2021 will introduce a new information notice that HMRC may issue to anyone it suspects of being involved in the...

15th Jan

Practice notes

What is an employment-related security?

Determining whether an employment-related security exists is a crucial step in determining whether the specific (and sometimes punitive) income tax...

15th Jan

Practice notes

Restricted securities—tax treatment and joint elections

The rules applying to directors and employees in relation to restricted securities contained within Chapter 2, Part 7 of Income Tax (Earnings and...

15th Jan

Practice notes

What are restricted securities?

The rules applying to directors and employees in relation to restricted securities contained within Chapter 2, Part 7 of Income Tax (Earnings and...

15th Jan

Practice notes

NICs implications of employment-related securities and securities options

The stated purpose of National Insurance contributions (NICs) is to fund and enable eligibility for certain state benefits, such as the state pension,...

15th Jan

Practice notes

Post-acquisition benefits

This note deals with the specific rules contained within sections 447–450 of Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) (Part 7, Chapter...

15th Jan

Practice notes

Why make a section 425 election (or no election) rather than a section 431 election?

This practice note sets out the key considerations and illustrative computations for determining whether to elect under section 425 or section 431 of...

15th Jan

Practice notes