Using Profit: HMRC Approved Employee Share Schemes

HMRC Approved Employee Share Schemes


All HMRC approved schemes must comply with statutory guidelines and must be formally approved by HMRC to acquire favourable tax treatment.

The requirement to follow a statutory formula may limit the advantages of the scheme from your company's point of view. You may have to exclude certain directors or employees from participation and limit the value of shares that may be allocated.

There are currently four different types of HMRC approved share schemes:

  • Company share option plans (CSOPs)
  • Enterprise management incentives (EMI) schemes
  • Share incentive plans (SIPs)
  • Save As You Earn (SAYE or Sharesave)

Click on the headings in the navigational column for further details of each.

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