Share subscriptions and non-tax advantaged arrangements

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Brexit legislation tracker

This Practice Note tracks the progress of UK legislation introduced as part of the legislative project associated with the UK’s withdrawal from the

Introduction to the EU GDPR and UK GDPR

Brexit: The Retained General Data Protection Regulation, Retained Regulation (EU) 2016/679 (UK GDPR) regime described in this Practice Note is the UK

How EMI schemes work and key features

EMI Review: In the Spring Budget 2020, the government announced that it will review the EMI scheme to ensure that it provides support for high-growth

EMI—qualifying companies

EMI Review: In the Spring Budget 2020, the government announced that it will review the EMI scheme to ensure that it provides support for high-growth

Practice notes

What is an employee benefit trust?

FORTHCOMING CHANGE: The EU Fifth Anti-Money Laundering Directive (5MLD) was published in the EU official journal on 19 June 2018 and came into force...

Produced in partnership with Jeremy Glover of Fenwick Elliott 26th Sep

Practice notes

Introduction to employee share ownership schemes

This Practice Note provides an introduction to:•why companies have employee ownership models•the main types of share ownership models, and•issues to...

26th Sep

Practice notes

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...

26th Sep

Practice notes

EMI and disqualifying events

EMI Review: In the Spring Budget 2020, the government announced that it will review the EMI scheme to ensure that it provides support for high-growth...

26th Sep

Practice notes

EMI—what makes an employee eligible?

EMI Review: In the Spring Budget 2020, the government announced that it will review the EMI scheme to ensure that it provides support for high-growth...

26th Sep

Practice notes

Employee ownership trusts

FORTHCOMING CHANGE: The EU Fifth Anti-Money Laundering Directive (5MLD) was published in the EU official journal on 19 June 2018 and came into force...

Produced in partnership with Stephen Woodhouse 26th Sep

Practice notes

Drafting leaver provisions in share plans

Leaver provisions and different types of schemeWhen drafting a set of share plan rules or an option or award agreement, a company will wish to make...

26th Sep

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...

26th Sep

Practice notes

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...

26th Sep

Practice notes

Growth shares (value shares)

What are growth shares?Growth shares, also known as value shares or hurdle shares, are a special class of shares that have restricted rights. These...

26th Sep

Practice notes

Malus and clawback

The use of malus and clawbackThe concept of withholding or even recovering value from executives if a material adverse event occurs following the...

26th Sep

Practice notes

Employee share schemes—dealing with leavers

What are leavers?Departing individuals are known generically as ‘leavers’ but the reason behind the departure will usually result in different...

Produced in partnership with Jenny Wheater of Duane Morris LLP 26th Sep

In-house

Practice notes

Setting up an employee benefit trust

FORTHCOMING CHANGE: The EU Fifth Anti-Money Laundering Directive (5MLD) was published in the EU official journal on 19 June 2018 and came into force...

Produced in partnership with Jeremy Glover of Fenwick Elliott 26th Sep

Practice notes

Introduction to enterprise management incentives (EMI) schemes

EMI Review: In the Spring Budget 2020, the government announced that it will review the EMI scheme to ensure that it provides support for high-growth...

26th Sep

Practice notes

What is a long-term incentive plan?

A long-term incentive plan (LTIP) is a term that is commonly used among listed companies to describe executive share plans under which a company makes...

26th Sep

Practice notes

EMI—requirements for options

EMI Review: In the Spring Budget 2020, the government announced that it will review the EMI scheme to ensure that it provides support for high-growth...

2nd Sep

Most recent Share subscriptions and non-tax advantaged arrangements content

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...

25th Sep

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,...

25th Sep

Practice notes

The advantages and disadvantages of each share incentive arrangement

This Practice Note seeks to summarise the main advantages and disadvantages of each of the following most commonly utilised share incentive...

25th Sep

Practice notes

Guidance on making a valid restricted security election

The procedure for making joint restricted securities elections is the same regardless of whether the election is made under section 425(3), 430 or 431...

25th Sep

Practice notes

Securities acquired for less than market value

This practice note deals with the specific rules applying to employment-related securities acquired for less than market value contained within...

25th Sep

Practice notes

Phantom share awards and options

What is a phantom award?Phantom awards, broadly speaking, can be split into two categories, phantom share awards and phantom options.Phantom share...

25th Sep

Practice notes

Practical steps involved in implementing growth shares

What are growth shares and are they appropriate?Growth shares, also known as value shares or hurdle shares, are a special class of shares that have...

25th Sep

Practice notes

Convertible securities—definition

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

25th Sep

Practice notes

NICs—rates and payment obligations in relation to employment-related securities and securities options

The stated purpose of National Insurance contributions (NICs) is to fund certain state benefits such as the State Pension, as well as other social...

25th Sep

Practice notes

Employment-related securities—reporting obligations

Employers (or other responsible persons) are required to provide specified information to HMRC in relation to reportable events involving...

25th Sep

Practice notes

Parallel options

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...

25th Sep

Practice notes

Convertible securities—tax treatment

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

25th Sep

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,...

25th Sep

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,...

25th Sep

Practice notes

Nil paid shares and partly paid shares—practical considerations

What are nil paid shares and partly paid shares?When shares are issued, their subscription price is normally paid in full at that time. Nil paid and...

25th Sep

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...

26th Sep

Precedents

Unapproved share option scheme rules

RULES OF THE [INSERT NAME OF COMPANY] SHARE OPTION SCHEMEAdopted by the Directors on [insert date] 1Definitions1.1In this Scheme, except where the...

26th Sep

Precedents

Award agreement for phantom share award plan

This Deed is dated [insert date].Parties1[Insert name of company] with company number [insert company number] whose registered office is at [insert...

26th Sep

Precedents

Nil paid or partly-paid share subscription agreement

If you are in any doubt about this agreement and the action you should take, it is recommended that you immediately seek your own personal independent...

26th Sep

Precedents

Restricted share agreement and certificate (exit—triggered)

This Agreement is made on [date] Parties1[NAME OF TRUSTEE] (registered in England and Wales under Company Number [•]) whose registered office is at...

26th Sep