What are performance conditions and why might they need amending? A performance condition is a pre-set condition which must be satisfied before the award holder is able...
UK tax-advantaged share options are granted under written arrangements which are required to comply with legislative requirements contained in Part 7 and the relevant...
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...
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’....
Various income tax and national insurance contributions (NICs) charges can arise for an employee or director in relation to the acquisition, ownership or disposal of...
The regime introduced in 2014 From 6 April 2014, obligations were imposed on companies to: • register their share schemes online with HMRC, by specified deadlines •...
On 6 April 2017, the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 (the Regulations), SI 2017/172 came into force. Under the Regulations, SI 2017/172,...
HMRC consists of specialist departments dealing with specific areas of employment related securities (ERS) and share schemes. The specific HMRC department to contact...
Where an employee or director acquires, holds or disposes of shares or securities in connection with his or her employment, income tax on employment income can arise...
What is share dilution? Share dilution happens when a company issues additional shares in itself. As a result the existing shareholders' ownership in the company is...
The stated purpose of National Insurance contributions (NICs) is to fund and enable eligibility for certain state benefits, such as the state pension, and other social...
The stated purpose of National Insurance contributions (NICs) is to fund certain state benefits such as the State Pension, as well as other social security benefits such...
The income tax charges associated with employment-related securities and securities options typically arise upon acquisition of securities, or because an amount of...
The concept of ordinary share capital is important for UK tax purposes. This Practice Note sets out the key tax reliefs that require ordinary share capital (whether...
Measurement and timing of fair values including outline of the Black Scholes model The accounting cost for an equity-settled share based payment (SBP) is normally...
The purpose of this note is to outline the main areas where parallel options are typically of use, how they impact upon other share incentive arrangements, the acceptance...
Pay as you earn (PAYE) is the mechanism by which income tax (and National Insurance contributions (NICs) and certain other statutory deductions) must be withheld and...
Share options are an enforceable right for an employee to acquire shares at a given price, subject to meeting pre-determined conditions. The share option contract between...
In order to be eligible for the grant of share options under either of the following tax-advantaged employee share arrangements: • a company share option plan (CSOP), or...
This note looks at the issues arising for companies trading on the AIM when designing and operating their employee and executive share schemes. It highlights the key...
Private and unlisted companies face particular issues when implementing share schemes for their employees. Key points include the lack of a ready market for the shares,...
Individuals may, at any one time, be employed by more than one employer, usually on a part-time basis for each company. These companies may sit in the same group or may...
What is an underwater share option? 'Underwater option' is the term used to describe a share option (granted under any share option scheme) which has an exercise price...