What we do / Advisory / Share Incentive Schemes

Incentivise, retain, and reward – the right way

We’ll help you make sense of your share incentive options, and find a tax-efficient solution that benefits everyone

Tailored support from pragmatic partners

If you’re looking for an innovative, tax-efficient approach to share incentives, we’re here to help. We advise on a number of incentives, including Enterprise Management Incentive (EMI) share option schemes, and will meticulously explore your options. So you can make an informed choice about the scheme that’s right for your business.

Get advice from those in-the-know

Our comprehensive approach ensures you won’t miss a single opportunity. We’ve been growing our expertise since 1938, and have built up a wealth of knowledge across taxation, accountancy and commercial matters.

Looking for assurance that you’ve explored every avenue available to you? Here’s how we can help:

  • Advise

    Advise

    Advising on, and structuring of, share incentive scheme. In addition to tax advice.

  • HMRC Valuations

    HMRC Valuations

    For tax advantaged share schemes (EMI and Company Share Option Plans (CSOP)).

  • Financial Reporting

    Financial Reporting

    Support for share based payment charges.

  • Compliance

    Compliance

    Employment related securities (ERS), Annual Returns and share scheme compliance.

Let’s get started

Ready to find a scheme that benefits your employees and your business?

FAQs

What are the most tax favourable share incentive schemes?
Share options granted under the Enterprise Management Incentive (“EMI”) scheme offer significant tax benefits for employees. The EMI scheme is also flexible and should be the first option for employee share incentive schemes.
What alternatives are available to EMI options?
There are various conditions attached to EMI share option schemes which can mean that sometimes, alternatives are needed. Thankfully, there are a number of options. Another tax-advantaged scheme (CSOP) can offer a similar tax position to EMI options. Other alternatives include growth share schemes, nil/part-paid share schemes and unapproved option schemes.
How does the EMI valuation process work?
As part of the EMI process, you have the ability to agree a share valuation with HMRC. This share valuation determines the tax profile of the options. The process involves approaching HMRC with a proposed valuation for the shares, over which options will be granted. HMRC will then either approve the valuation or propose an alternative value.
What factors do HMRC take into account when assessing an EMI share valuation?
We submit many EMI valuations to HMRC, and have a deep understanding of how HMRC assess valuation. In our experience, HMRC will look at performance indicators like profits, but also consider market indicators, such as recent share transactions. They often put the greatest weight on recent share transactions when assessing value.
How do growth shares work?
Growth shares are a specific share class created to have limited current value. This valuation position is created by setting the rights of the shares so that on an exit event, value would only pass to the holder above a specified value ‘hurdle’. The principle being here that as the shares have limited current value they can be issued to employees without an initial tax cost.