About Share Incentives
The world of share incentives and employee ownership is currently one of the hottest topics and a huge priority for the current government. The law is constantly changing and companies are regularly having to grapple with new legislation, new guidance and new ideas. In such a complex, ever-changing area, where the repercussions of getting it wrong can be unforgiving, companies need to understand the law and implement it correctly.
Corporate governance content
Reports on executive pay are regularly in the news. We include subtopics on corporate governance, remuneration issues for financial services firms and a comparison of UK Corporate Governance remuneration principles.
Disguised remuneration
Get updated documents and a Practice Note examining common disguised remuneration scenarios in share schemes. There’s nothing like this elsewhere.
Key Share Incentives developments
Keeping up-to-date on developments naturally important. We produce a weekly Share Incentives highlights report and email it straight to subscribers' inboxes. It's also posted on our news carousel.
Topics We Cover
Our Share Incentives Experts
Nicky Griffin
Stephen Woodhouse
David Pett
William Franklin
David Cohen
Latest Share Incentives News
This week's edition of Share Incentives weekly highlights includes (1) an update on the progress of Finance Bill 2025 and (2) a further focus on...
This week's edition of Share Incentives weekly highlights includes (1) an increase in HMRC’s official rate of interest from 2.25% to 3.75% and (2) a...
This week's edition of Share Incentives weekly highlights includes (1) a focus on executive pay in the run-up to AGM season and (2) publication of the...
This week's edition of Share Incentives weekly highlights includes a focus on executive pay in the run-up to AGM season....
This week's edition of Share Incentives weekly highlights includes a focus on executive pay in the run-up to AGM season....
Latest Share Incentives Practice Notes
Money Laundering Regulations 2017—impact on trusteesBackground to Money Laundering Regulations 2017The Money Laundering, Terrorist Financing and...
CSOP—CGT treatment and corporation tax treatmentCapital gains tax—basic principlesWhen a person disposes of an asset and makes a profit that is...
How EMI schemes work and key featuresThe law governing EMI optionsThe legislation that governs EMI options consists of:•sections 527–541 of the Income...
Unapproved share optionsWhat are unapproved share options?Share options are rights to acquire shares which can be exercised when certain conditions...
EMI options—common misunderstandings and mistakesAlthough EMI share options can be enormously tax efficient, they also pose potentially large...
Latest Share Incentives Precedents
Growth shares term sheet[INSERT NAME OF COMPANY]growth SHARESThis term sheet summarises a proposal to incentivise key employees of [insert name of...
Enterprise management incentives (EMI) qualification questionnaireEnterprise management incentives suitability questionnaire in respect of [insert...
SAYE letter of invitationFORTHCOMING CHANGE: Following its announcement as part of the Spring Budget on 15 March 2023, HMRC published a call for...
EMI AgreementThis Agreement is made on [insert date of execution of the share option agreement]Parties1[insert name of Company whose shares are being...
EMI share option scheme rulesRules of the [insert name of company granting EMI options] enterprise management incentives Scheme1Definitions and...
Latest Share Incentives Q&As
Featured Share Incentives content
How do I contact HMRC with a share schemes related query?
How do I contact HMRC with a share schemes related query?HMRC consists of specialist departments dealing with specific areas of employment related...
Malus and clawback
Malus and clawbackThe use of malus and clawbackThe concept of withholding or even recovering value from executives if a material adverse event occurs...
Tax implications of salary sacrifice
Tax implications of salary sacrificeCoronavirus (COVID-19): As part of a series of measures put in place to stop the spread of coronavirus (COVID-19),...
Corporation tax relief and employee share schemes
Corporation tax relief and employee share schemesCorporation tax deduction for costs incurred in setting up and operating employee share schemesCosts...
Underwater share options
Underwater share optionsWhat is an underwater share option?'Underwater option' is the term used to describe a share option (granted under any share...
What happens to restricted stock units or stock options that have vested during an employee's notice period (assuming the employee is still employed at the vesting date)?
Comparison of UK and US share incentive arrangements
Comparison of UK and US share incentive arrangementsCompanies in both the US and the UK have a long history of involving employees in equity...
Nil paid shares and partly paid shares—practical considerations
Nil paid shares and partly paid shares—practical considerationsWhat are nil paid shares and partly paid shares?When shares are issued, their...
Growth shares—practical examples and comparisons with options
Growth shares—practical examples and comparisons with optionsWhat are growth shares?Growth shares, also known as value shares or hurdle shares, are a...
What is a long-term incentive plan?
What is a long-term incentive plan?A long-term incentive plan (LTIP) is a term that is commonly used among listed companies to describe executive...
Unapproved share options—tax treatment
Unapproved share options—tax treatmentSpecific income tax rules (in sections 471–487 of the Income Tax (Earnings and Pensions) Act 2003 (Part 7,...
EMI—HMRC annual return
EMI—HMRC annual returnThis Practice Note details the following:•the EMI annual return form•the pre-registration and timing of completion of the annual...
Employee share schemes—dealing with leavers
Employee share schemes—dealing with leaversWhat are leavers?Departing individuals are known generically as ‘leavers’ but the reason behind the...
An introduction to deferred share bonus plans
An introduction to deferred share bonus plansDeferred share bonus: key elementsDeferred share bonus plans are typically constituted by the following...
Implementing share plans—ways to manage dilution of existing shareholders
Implementing share plans—ways to manage dilution of existing shareholdersWhat is share dilution?Share dilution happens when a company issues...
Notice of exercise of option
Notice of exercise of optionThe Company Secretary[insert date of letter][insert name of company who granted the option] (Company)[[insert address of...
Understanding US non-qualified deferred compensation arrangements and Internal Revenue Code Section 409A
Understanding US non-qualified deferred compensation arrangements and Internal Revenue Code Section 409ARelevance of non-qualified deferred...
What is a SIP?
What is a SIP?This Practice Note provides an introduction to the HMRC tax-advantaged share incentive plan (SIP). It provides a summary of:•the types...
Associated legal terms
Employee Tax Advantaged Share Scheme User Manual (ETTASUM)
The Employee Tax Advantaged Share Scheme User Manual (ETTASUM) is HMRC’s guidance relating to tax advantaged share schemes.
Share Incentive Plan
Share Incentive Plans (SIPs) (formerly known as Approved Employee Share Ownership Plans) are tax-advantaged share plans, that meet the requirements of Schedule 2 of ITEPA 2003. They were introduced in 2000 as a means of encouraging employees at all levels to acquire shares in their employer company.
Share option
A share option is an agreement between the holder of shares and a third party. An option gives one party the right (but not an obligation) to purchase shares at a specified price at a specified point of time (or on the occurrence of a specified event).
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