Edition 1st
Published July 2018
Length 286pp.
Suitable for Tax advisers, Employers
Price 85
ISBN 9781912386031

Employee Share Schemes


The current regime for taxing employee shares can be traced back to FA 2003. This Act represented a complete revision of the relevant rules, and substantially amended the freshly re-written Income Tax (Earnings and Pensions) Act 2003.

The underlying principle of the FA 2003 regime 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 underlying 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

Company considerations
Corporation tax
Operation of PAYE and NIC
Reporting and accounting

Implementing share schemes
Designing an employee share scheme
What shares to use in the plan
Employee share schemes and employee trusts

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

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