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) publication of Finance Bill 2024–25, (2) a change in the bonus rates for SAYE...
This week's edition of Share Incentives weekly highlights includes (1) the Takeover Panel’s response to its recent consultation, in which it confirms...
This week's edition of Share Incentives weekly highlights includes (1) the key announcements from the Autumn Budget 2024, (2) HMRC’s Spotlight 66...
Tax analysis: A summary of the key business tax announcements made in the Autumn Budget on 30 October 2024. Key announcements include an increase to...
This week's edition of Share Incentives weekly highlights includes (1) an announcement by the CEO of the PRA that it will be reducing deferral periods...
Latest Share Incentives Practice Notes
Brexit—implications for data protection [Archived]ARCHIVED: This archived Practice Note provides information on the Data Protection, Privacy and...
Brexit—UK listing and prospectus regime [Archived]At 11pm UK time on 31 January 2020 (exit day), the United Kingdom left the European Union in...
Brexit legislation trackerThis Practice Note tracks the progress of UK legislation introduced as part of the legislative project associated with the...
Brexit timelineOn 23 June 2016, the UK held a referendum on its membership of the EU, with a majority voting in favour of the UK leaving the EU. On 29...
Brexit—introduction to the Withdrawal AgreementThe UK’s formal withdrawal from the EU took effect at 11 pm on 31 January 2020 (exit day). At this...
Latest Share Incentives Precedents
Employee Benefit Trust DeedFORTHCOMING CHANGE: On 30 October 2024, as part of Autumn Budget 2024, and following a consultation undertaken between 18...
Cashless exercise wordingAdditional definitionsOption Holders•[insert list of Option Holders who are exercising their Options or refer to relevant...
Board minutes establishing EOT[insert name of Company]Company No [insert registered number of Company](the Company)FORTHCOMING CHANGE: On 30 October...
Salary sacrifice scheme—employee FAQs[For use only where the employee is foregoing salary for the following benefits that retain Tax and/or NICs...
SIP Partnership share agreement including matching sharesFORTHCOMING CHANGE: Following its announcement as part of the Spring Budget on 15 March 2023,...
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
Pensions and Lifetime Savings Association (PLSA)
Previously known as the National Association of Pension Funds (NAPF), the main trade organisation of the UK occupational pensions industry, with a focus on corporate governance issues and the development of institutional voting guidelines for its members.
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.
Unapproved option
The term 'unapproved option' is used to refer to any share option which does not benefit from HMRC tax advantageous treatment.
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