Share option Schemes

A share option scheme can be one of the most valuable tools available when it comes to retaining, motivating and incentivising staff. In simple terms, it is an option to buy shares in the company at some point in the future but at today’s price. That gives the employee the ability he or she may not otherwise have had to potentially receive a large lump sum if the company is successful going forward.

There is a diversity of schemes available with varying tax advantages. Generally, the most tax efficient is the Enterprise Management Incentive scheme although it can only be implemented if a number of qualifying conditions are met.

To help you navigate through the minefield of schemes, we can:

• Advise on the pros and cons of the various schemes and identify those which may be most relevant for you

• Agree formal share valuations with HMRC

• Register the scheme(s) with HMRC

• Prepare the initial Option Agreements and other necessary statutory paperwork

• Ensure annual scheme reporting requirements to HMRC are complied with