Share Incentive Plans (SIPs) are HMRC approved share plans and tax advantaged plans. In general terms, a SIP must be open to all UK resident employees of relevant companies. However, other employees may also be invited to participate. The shares awarded under a SIP are held in a trust and provided they are held for at least five years, the SIP is tax-efficient for both the employer and the employees. The SIP enables an employee to receive shares in his employer company in a variety of different ways. The first type are “Free Shares” which, in certain circumstances, can be given to the employee at no cost with no income tax or NIC consequences. The SIP also enables employees to purchase new shares in their employer company and, at the same time, obtain income tax relief on the purchase. Shares purchased in this way under a SIP are known as “Partnership Shares”. If an employee purchases partnership shares under a SIP, he may be entitled to receive additional free shares. These extra free shares are known as “Matching Shares”. Finally, a SIP enables employees to re-invest their dividends in order to purchase additional shares in the company. These shares purchased out of dividend income are known as “Dividend Shares”.
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
IntroductionConsortium relief enables losses of a consortium company to be transferred to consortium members in proportion to the consortium member’s interest in the consortium company, and vice versa. Consortium relief is a flexible relief which is available in several different scenarios which are
Class 2 and Class 4 national insurance contributions (NIC) are paid by self-employed individuals and partners in a partnership on their profits arising within the UK. This guidance note considers Class 4 contributions. For Class 2 contributions, see the Class 2 national insurance contributions
Companies Act 2006 allows a company to repurchase its own issued share capital, provided certain conditions are met. This type of transaction is sometimes referred to as a ‘share buyback’ or a ‘purchase of own shares’.The repurchased shares can either be immediately cancelled, which is typically the
Class 2 and Class 4 NIC are payable by self-employed earners and partners in a partnership. This guidance note considers Class 2 contributions. For Class 4 contributions, see the Class 4 national insurance contributions guidance note.Class 2 NIC arise where a self-employed individual has income