Known collectively as ERS – Employee Related Securities – these employee share schemes can include Company Share Option Plan (CSOP), Share Incentive Plan  (SIP), Non-Tax Advantage and Enterprise Management Incentives (EMI). All of these options, apart from the non-tax advantage share schemes, are free from income tax or national insurance.

EMIs, targeted at smaller businesses, are among the most tax efficient share options schemes available. They tend to be the first choice among owner managed businesses, but they do come with conditions. Only trading companies are eligible and share options can’t be issued in a subsidiary. Large companies don’t qualify and EMIs  aren’t open to certain business sectors including property, farming, banking and professional services.

It’s important, too, that your new ERS schemes is registered with HMRC, including any one-off awards or gifts of shares. As there are a number of different  schemes to consider, all with their own conditions, you will need sound professional advice – something our team can provide.