½Û×ÓÊÓƵ

Table comparison of tax-advantaged (HMRC approved) share schemes

Produced by a Tolley Employment Tax expert
Employment Tax
Guidance

Table comparison of tax-advantaged (HMRC approved) share schemes

Produced by a Tolley Employment Tax expert
Employment Tax
Guidance
imgtext

The following table summarises the main requirements, similarities and differences between the four current tax-advantaged or ‘HMRC approved’ share schemes. Further details including legislative background and HMRC guidance is supplied on the individual guidance notes covering each type of scheme. For details of potential corporation tax reliefs on share schemes, see the Relief for employee share schemes guidance note.

Share Incentive Plan (SIP)Savings Related Schemes (also known as ‘SAYE’ or ‘Sharesave’)Company Share Option Scheme (CSOP)Enterprise Management Initiatives (EMI schemes)
Basic scheme descriptionEmployee obtains tax and NIC relief when buying employing company’s shares (‘partnership shares’). The company may also offer ‘free’, or ‘matching’ shares, income tax free.
Shares are normally held in trust at least until retention periods have elapsed
Employee regular monthly net pay deductions (no tax or NIC relief obtained) put in savings account for (minimum) three years. Employee then has option to buy shares at up to 20% discount on initial market value, or can simply take their money back Share option permits selected employee

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by

Popular Articles

Wholly and exclusively

Wholly and exclusivelyFor both income tax and corporation tax purposes, one of the fundamental conditions that must be satisfied for an item of expenditure to be deductible, is that it must incurred ‘wholly and exclusively’ for the purposes of the trade, profession or vocation. References to CTA

14 Jul 2020 14:00 | Produced by Tolley Read more Read more

Transferable tax allowance (also known as the marriage allowance)

Transferable tax allowance (also known as the marriage allowance)What is the transferable tax allowance (marriage allowance)?From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (£1,260) to the spouse or civil partner where neither party is a higher rate or additional

14 Jul 2020 13:52 | Produced by Tolley Read more Read more

Trade or hobby

Trade or hobbyInteraction of hobby farming rules and commercialityFarming has its own set of ‘hobby farming rules’, which historically have stated that a profit must be made every six years. This is known as ‘the five-year rule’, in that there can be five years of losses but there must be a profit

14 Jul 2020 13:50 | Produced by Tolley Read more Read more