Share schemes: the ultimate reward?

Author: Inez Anderson

Categories: Employees, Features, Leadership, Share Schemes
Tags: corporate tax, employee rewards
Inez Anderson: "There’s a very wide range of share schemes and they can range from where you’re actually giving somebody a share or giving them an option over a share. And they’re both very different and are taxed in very different ways.  And some schemes are Revenue approved and some are unapproved schemes.  And the approved ones will have some really good tax breaks built into them.  The schemes can range from being ones which are really suitable for hundreds of thousands of employees down to a very bespoke scheme just even for one individual.  But if we start by just looking at maybe something that’s the most common scheme or the most popular and not every employer can put one in place.  And the employers who can’t, always want to have it, it’s called an EMI scheme - Enterprise Management Incentive scheme.  And it really is for smaller organisations, smaller companies because you can have no more than 250 employees.  And the company has got a cap on its gross assets of 30 million.  And some types of companies can’t be involved in the arrangements; it depends on the nature of their business.  But it’s got huge amounts of tax breaks and indeed there’s been even more just recently introduced, very much trying to encourage share ownership within smaller companies."
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