Employee shareholder shares

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Archived: The ability to offer tax-favoured employee shareholder shares or ESS (commonly used in private equity company arrangements) has now been removed. This was announced in the Autumn Statement 2016.

The changes relate to any employer shareholder agreements made on or after 1 December 2016.

The changes do not affect ESS agreements entered into prior to 1 December 2016.

The decision to abolish ESS followed evidence suggesting that the ESS is being used for tax planning purposes instead of for its originally intended use of supporting a more flexible workforce. The measure currently does not affect

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Latest Share Incentives News

Share Incentives weekly highlights—15 May 2025

This week's edition of Share Incentives weekly highlights includes (1) a change in bonus rates for SAYE schemes, (2) a focus on executive remuneration as the 2025 AGM season continues and (3) the Court of Appeal decision in Amedeo Fasano v Reckitt Benckiser Group PLC.

Share Incentives weekly highlights—8 May 2025

This week's edition of Share Incentives weekly highlights includes a focus on executive remuneration, as the 2025 AGM season continues.

Share Incentives weekly highlights—1 May 2025

This week's edition of Share Incentives weekly highlights includes(1) HMRC’s new package of tax administration and simplification measures announced this week, (2) HMRC’s Employment Related Securities Bulletin 60, and (3) numerous investor revolts over executive pay, including Melrose Industries plc suffering a defeat in respect of its directors’ remuneration report, as the 2025 AGM season continues.

Tax update spring 2025—Tax analysis

Tax analysis: On 28 April 2025, the government announced a package of technical tax policy proposals aimed at simplifying and reforming the tax system and improving tax administration. These announcements included the publication of draft legislation, new consultations, various technical papers and responses to consultations, as well as updates on previously announced measures together with new initiatives.

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