Share Schemes 

Company share schemes are becoming an increasingly popular option for business owners. As part of remuneration planning strategies, share schemes can offer a tax-efficient way to reward and incentivise key employees. They also provide succession planning options for forward-thinking business owners seeking to leave a corporate legacy. 

At Consilium Chartered Accountants we offer specialist advice on structuring UK company share schemes. Our clients often take advantage of HMRC-approved share schemes, and in particular, Enterprise Management Incentives (EMIs), as these can be tax efficient for both the employee and the business owners. 

We can also advise on alternatives such as hurdle or growth shares where EMIs are not suitable.

Learn more about the benefits of employee share schemes and tax incentives for UK businesses below. To arrange a virtual or in-person consultation about share scheme options, contact Tax Partner Craig Coyle.

What are the benefits of an employee share scheme? 

The advantages of employee share schemes are extensive for both the business owner and their employees. Through equity remuneration packages and shared ownership, company share schemes can: 

  • Enhance staff recruitment and retention 
  • Motivate key employees 
  • Provide Succession planning options for business owners
  • Offer opportunities to offset costs against Corporation Tax liabilities
  • Be more tax efficient for employees than salary or bonus payments. 

Enterprise Management Incentives for UK businesses 

The UK Government supports employee participation in share schemes by offering Enterprise Management Incentives (EMIs). 

Under this scheme, companies can grant share options to employees in a tax-efficient manner.  

The exact structure and type of share scheme will of course determine its effectiveness. However, company share schemes are a good option for businesses because they can:  

  • Incentivise and motivate key employees
  • Offer a tax-efficient alternative to salary/bonus payments, as part of wider remuneration planning strategies
  • Enhance staff recruitment and retention through equity.

To arrange an informal consultation, virtually or in person, contact our Tax Partner Craig Coyle

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Craig Coyle
Tax Advisory
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0141 204 6650