Edition 2nd
Published August 2022
Length ca. 300 pages
Suitable for Tax advisers, Employers
Price £85
ISBN 9781912386208

Employee Share Schemes 2nd Edition


Please note this book will be published in August. If you need it urgently, an earlier edition is still available.

The current regime for taxing employee shares can be traced back to FA 2003. The underlying principle is that value "gifted" to an employee is taxed as employment income, while organic growth in the value of securities benefits from capital treatment. That principle is worked out through a series of approved schemes, each with its own advantages and restrictions. 

This book examines the different schemes and offers clear and practical guidance for employers considering the implementation of such schemes and for their professional advisers. 

Thomas Dalby, has more than 20 years' experience as a chartered tax adviser and as an employed barrister. He has advised on the design and implementation of a wide variety of share option schemes.


Background and first principles
Legislative background

Taxation of employee securities
Acquisition of securities
Post-acquisition changes
Disposal of shares
Foreign securities income

Company considerations
Corporation tax
Reporting and accounting

Implementing share schemes
Designing an employee share scheme
What shares to use in the plan
Practical implications

Statutory share schemes
Introduction to the statutory schemes
Enterprise management incentives
Company share option plans
Share incentive plans

Employee share trusts
Employee share schemes and employee trusts
Employee-ownership trusts

New for this edition

  • FTT discussion of meaning of “securities” and subsequent amended HMRC guidance
  • Court of Session consideration of ITEPA 2003 provisions re “by reason of employment”
  • Court of Appeal consideration of older company reorganisation rules
  • Introduction of health and social care levy
  • Additional commentary and example re equity value
  • Additional commentary and example, and Supreme Court and other case law rulings, re chargeable event exemption for “normal” transactions
  • Court of Session ruling creating doubt over scope of statutory scheme for employment-related securities options
  • Detailed new commentary and examples reflecting change from former entrepreneurs’ relief to business asset disposal relief
  • New chapter added re foreign securities income
  • Five-year time limit for claiming deduction for contributions to employee benefit trusts
  • Report from Office of Tax Simplification commenting on CGT re growth shares
  • New chapter on practicalities of implementing a share scheme
  • Practical point re appointment of corporate trustees
  • Importance of working time declaration for EMI schemes
  • New chapter on employee-ownership trusts