Why use a share scheme?

Produced by Tolley in association with

Employment Tax

Guidance

If you talk to enough company directors, it becomes apparent that there are numerous reasons why they have decided to implement share schemes. For the most part, employee share incentive arrangements are only introduced after considerable thought and planning. As a result, there is every chance that they will fulfil an organisation’s expectations.

However, on occasion share schemes are implemented at the suggestion of professional advisers who have not fully explained the benefits. This is clearly not the best route to derive maximum benefit for the company or its employees.

The underlying factors that lead companies to introduce share schemes tend to be very different depending on their size. Ultimately though, the main goal is often to persuade employees to perform better and in doing so help the company to achieve their respective targets.

Size of organisation

Large companies, such as those quoted on the FTSE 100 list, generally offer a number of different share incentives arrangements, primarily because the market

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

TAKE A FREE TRIAL

Popular Articles

Owner-Managed Businesses

Residential property and capital allowances

Residential property and capital allowancesResidential property ― plant and machinery allowancesOrdinary residential property does not, and never has, qualified for capital allowances. as CAA 2001, s 35 denies plant allowances for expenditure incurred in providing plant or machinery for use in a

14 Jul 2020 17:14 | Produced by Tolley in association with Martin Wilson and Steven Bone Read more

Corporation Tax

Taxation of loan relationships

Taxation of loan relationshipsThe vast majority of companies will have loan relationships and so will need to consider how they are taxed under the loan relationship rules. There are also specific provisions dealing with relevant non-lending relationships and other deemed loan relationships.

14 Jul 2020 13:48 | Produced by Tolley Read more

Owner-Managed Businesses

Repairs and renewals

Repairs and renewalsThe key consideration in determining whether expenditure on repairs and renewals is allowable as a deduction for tax purposes is whether it is capital or revenue in nature. In some cases, it can be relatively straightforward to identify revenue repairs. HMRC provides the

14 Jul 2020 13:23 | Produced by Tolley Read more

UU��ֱ��