Scheme design and financial considerations (including valuation and accounting)

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Practice notes
This Practice Note explains the Principles for Businesses (PRIN) set down by the Financial Conduct Authority (FCA). The Principles form part of the...
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9th Nov
Practice notes
This Practice Note provides an introduction to retained EU law, which is an entirely new legal concept introduced to UK domestic law in preparation...
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9th Nov
Practice notes
Coronavirus (COVID-19): HMRC has stated in its International Manual that if a financial institution cannot meet the FATCA reporting deadline of 31 May...
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Produced in partnership with Ali Kazimi and Chris Orchard of Hansuke Consulting Limited 12th Jan
Practice notes
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...
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Produced in partnership with Simon Adams of RSM UK Tax and Accounting Limited 12th Jan
Practice notes
The Quoted Companies Alliance (QCA) is an independent membership organisation that champions the interests of small to mid-sized quoted companies. One...
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9th Nov
Practice notes
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...
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Produced in partnership with Jonathan Fletcher Rogers of Addleshaw Goddard 12th Jan
Practice notes
What are growth shares?Growth shares, also known as value shares or hurdle shares, are a specially constituted class of shares which have restricted...
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9th Nov
Practice notes
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...
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Produced in partnership with Jeremy Edwards of Baker McKenzie 12th Jan
Practice notes
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...
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9th Nov

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

Practice notes
This Practice Note provides a brief introduction to the equity and incentive compensation plans and agreements that US startups often use to attract...
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15th Jan
Practice notes
Relationship with accountingAs well as share based payments (SBP) accounting for the costs of employees, share schemes usually involve accounting for...
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Produced in partnership with William Franklin 15th Jan
Practice notes
Measurement and timing of fair values including outline of the Black Scholes modelThe accounting cost for an equity-settled share based payment (SBP)...
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Produced in partnership with William Franklin 15th Jan
Practice notes
Corporation tax deduction for costs incurred in setting up and operating employee share schemesCosts incurred in setting up and operating an...
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Produced in partnership with Laura Gould 15th Jan
Practice notes
Coronavirus (COVID-19)—Due to measures put in place to stop the spread of coronavirus (COVID-19) HMRC has temporarily changed the way it deals...
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Produced in partnership with Mahesh Varia and Claire Prentice of Travers Smith 15th Jan
Practice notes
Due to the complexities of the legislation governing business asset disposal relief (BADR) (previously entrepreneurs' relief) and the legislation...
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15th Jan
Practice notes
Readily convertible assets and PAYEWhere an employee is granted a right to acquire shares (an option) under an option plan that is not tax favoured,...
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Produced in partnership with Renu Birla 15th Jan
Practice notes
A cash settled share based payment (SBP) expense arises when an employee provides services in return for the company accepting a liability or...
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Produced in partnership with William Franklin 15th Jan
Practice notes
Coronavirus (COVID-19): On 8 June 2020, HMRC confirmed in its Employment Related Securities Bulletin 35 that any new EMI valuation agreement letter...
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Produced in partnership with Renu Birla 15th Jan
Practice notes
What is an LLC and how is it different to other forms of business organisation?A limited liability company (LLC) is a legal form of business...
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Produced in partnership with Stephen Diosi of Mishcon de Reya 15th Jan
Practice notes
HMRC consists of specialist departments dealing with specific areas of employment related securities (ERS) and share schemes. The specific HMRC...
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15th Jan
Practice notes
IntroductionA tax indemnity enables an employer to recover amounts of income tax and National Insurance contributions (NICs) from an employee, usually...
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15th Jan
Practice notes
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...
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15th Jan
Practice notes
A limited company may hold, or deal with, shares in itself, if certain conditions set out in the Companies Act 2006 (CA 2006) are met. Those shares...
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15th Jan
Practice notes
Share-based paymentsFor entities that prepare financial statements under international accounting standards, the share-based payment (SBP) accounting...
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Produced in partnership with William Franklin 14th Jan
Practice notes
Typically when a company adopts a new plan, it will initially plan to satisfy awards either:•using newly issued shares, or•using existing shares...
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Produced in partnership with Renu Birla 11th Jan
Practice notes
Private companies that implement share option schemes will often make use of 'exit-only' options, meaning that share options can only be exercised by...
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Produced in partnership with Sarah Anderson of RM2 Partnership 11th Jan
Practice notes
The use of malus and clawbackThe concept of withholding or even recovering value from executives if a material adverse event occurs following the...
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Produced in partnership with Nick Hipwell, Sarah Ferguson and Chris Baker of DLA Piper 11th Jan
Practice notes
This Practice Note provides an overview of the questions which need to be asked when planning a new share-based incentive arrangement. The outcome of...
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Produced in partnership with Renu Birla 11th Jan
Practice notes
Employee share scheme participants and shareholdersThis Practice Note looks at the issues arising on the death of a participant in both HMRC...
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Produced in partnership with Karen Cooper of Cooper Cavendish 8th Jan

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