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

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

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 description	Employee 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, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Owner-Managed Businesses

Special rate pool and long life assets

Special rate pool and long life assetsSpecial rate poolExpenditure on some types of plant or machinery must, if neither annual investment allowance (AIA) nor first year allowances (FYAs) are available, be allocated to a ‘special rate pool’. Expenditure to be allocated to the special rate pool

14 Jul 2020 13:41 | Produced by Tolley Read more

Corporation Tax

Taxation of loan relationships

Taxation of loan relationshipsThe vast majority of companies will have loan relationships and so will need to consider how they are taxed under the loan relationship rules. There are also specific provisions dealing with relevant non-lending relationships and other deemed loan relationships.

14 Jul 2020 13:48 | Produced by Tolley Read more

Trusts and Inheritance Tax

Bare trusts ― income tax and CGT

Bare trusts ― income tax and CGTThis guidance note explains how trustees of bare trusts are treated for income tax and capital gains purposes. Although a bare trust is, in equity, a type of trust, for both income tax and capital gains tax purposes its existence is transparent. This means that no tax

14 Jul 2020 15:34 | Produced by Tolley Read more

UU��ֱ��