The following Employment Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Phantom share schemes are bonus arrangements where the calculation of the reward is measured by improvements in corporate performance.
Whilst not technically a share scheme, these are used by both share scheme planners and employers. They should therefore be considered as part of an overall project to decide on the best ways of incentivising employees based on company share performance.
Phantom share schemes operate as a type of shadow share option arrangement. The main difference from the standard share scheme model is that phantom schemes do not involve the use of any actual shares.
This can prove attractive to companies that do not wish to allow employees to have direct holdings, either because they are concerned about altering the balance of power or do not want to allow anybody except founders, family members or equivalents
**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.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
To view our latest tax guidance content, sign in to Tolley® Guidance or register for a free trial.