Share schemes issues and considerations

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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 9th Nov

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 9th Nov

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 9th Nov

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 9th Nov

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 Share schemes issues and considerations content

Practice notes

Executive directors' shareholding and post-employment shareholding requirements for UK listed companies

Executive directors’ shareholding requirementsAligning executive directors' pay with a company's long-term strategy and the interests of its...

25th Nov

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...

19th Oct

Practice notes

How employment income is taxed—shares or securities

Where an employee or director acquires, holds or disposes of shares or securities in connection with his or her employment, income tax on employment...

15th Oct

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 6th Oct

Practice notes

CGT—business asset disposal relief (formerly entrepreneurs' relief)

Business asset disposal relief (BADR), which was called entrepreneurs' relief for tax years prior to 2020–21, is a capital gains tax (CGT) relief that...

Produced in partnership with Satwaki Chanda 5th Oct

Q&As

Is the grant of a nominal value share option by a listed company to a non-executive director unlawful financial assistance?

Although the courts have held that the Companies Act 2006 (CA 2006) does not give a technical definition of ‘financial assistance’, CA 2006 does...

29th Sep

Q&As

How do I terminate a share scheme registered in error or that is no longer required?

Details on how to terminate a registered share scheme are contained in Employment Related Securities Bulletin 24 (June 2017) and Employment Related...

28th Sep

Q&As

What is the difference between a share and a share option?

A share gives the holder a direct and immediate shareholding in the company with all the rights attaching to that share. Conversely, a share option is...

28th Sep

Q&As

Do sections 755–756 of the Companies Act 2006 prevent the grant of share options and awards?

Prohibition of public offers by private companyUnder the section 755(1) of the Companies Act 2006 (CA 2006), a private limited company must not:•offer...

28th Sep

Q&As

What is the definition of retirement for share scheme purposes and does a company have to provide back-dated payments for employees who would have been entitled to a share award if the policy was implemented before they retired?

As a general comment, share incentive schemes are normally introduced in order to encourage employees to remain working in the business rather than to...

28th Sep

Practice notes

Ordinary share capital—what it means and why it matters for UK tax purposes

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...

26th Sep

Practice notes

PAYE implications of securities options

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

26th Sep

Practice notes

Discretions in employee share schemes

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...

26th Sep

Practice notes

Implementing share plans—ways to manage dilution of existing shareholders

What is share dilution?Share dilution happens when a company issues additional shares in itself. As a result the existing shareholders' ownership in...

26th Sep

Practice notes

How do I contact HMRC with a share schemes related query?

HMRC consists of specialist departments dealing with specific areas of employment related securities (ERS) and share schemes. The specific HMRC...

26th Sep

Practice notes

Overview of the equity settled share based payments accounting regime

Measurement and timing of fair values including outline of the Black Scholes modelThe accounting cost for an equity-settled share based payment (SBP)...

26th Sep

Practice notes

Gender pay gap reporting and employee share schemes

Coronavirus (COVID-19): On 24 March 2020, the Government Equalities Office and Equality and Human Rights Commission announced that, due to the...

26th Sep

Practice notes

Underwater share options

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...

26th Sep

COVID-19

Practice notes