Employee Share Schemes: Equity Reward for Private Companies 3rd Edition

The current regime for taxing employee shares can be traced back to FA 2003. The underlying principle is that value “gifted” to an employee is taxed as employment income, while organic growth in the value of securities benefits from capital treatment. That principle is worked out through a series of approved schemes, each with its own advantages and restrictions.

This book examines the different schemes and offers clear and practical guidance for employers considering the implementation of such schemes and for their professional advisers.

New for this edition:

• Supreme Court decision in Vermilion Holdings re deeming provisions
• New section on valuing leveraged equity
• New section on DOTAS considerations in relation to share schemes
• Reduced CGT annual exemption
• Additional commentary on all-employee schemes
• Additional detail re advance assurance applications
• Amended EMI scheme requirements for options granted from 6 April 2023
• Changing time limit re notifying EMI options from 6 April 2024
• Additional commentary on new HMRC guidance re discretion in EMI schemes, following Eurocopy and Reed cases
• New legislation re eligible CSOP share types, from 6 April 2023
• Expanded commentary re documentation requirements for CSOP options
• New chapter added re Save As You Earn schemes, covering eligibility, establishing the scheme, employee tax treatment, company tax treatment, transactions, leavers, amending options, and reporting
• New section on DOTAS considerations in relation to employment income provided through third parties (disguised remuneration rules)