Course Objective
To enable participants to understand the use of Approved and tax advantaged shares. The differences between different types of share and options schemes that are offered to employees.
The course will also examine the tax opportunities and challenges in such plans. The substantial changes announced in the last year will be examined.
Course Outline
New registration process
- Requirements for documents
- Registration by HMRC- observations
- Annual Returns
- Risks in new registration process
- All-employee v discretionary plans
The attractions of tax favoured plans
- Comparison of options and share purchase plans
- Income tax treatment on shares and options-advantages over unapproved plans
- Impact of Budget and Autumn Statement changes on share plans
- Modelling the financial advantages from the plans
- Capital gains tax treatment of disposal of shares
Sharesave
- Contribution terms and rates
- Bank Account/Building Society requirements
- Exercise process
- Effect of Corporate transactions
Share Incentive Plan (SIP)
- Partnership Shares
- Matching Shares
- Free Shares
- Dividend Shares
Company Share Option Scheme (CSOP)
- Option Limits calculation
- Cashless exercise
- Interaction with other plans
Enterprise Management Incentive (EMI)
- Qualifying Company
- Qualifying Employees
- Conditions
- Interaction with Entrepreneurs relief
“Shares for rights”
- Conditions
- Rights given up
- Tax incentives
Joint Share Ownership (JSOP)
- Concept
- Tax attractions
- Valuation
- Carry charges
- Valuation
Tax planning on vesting & exercise
- In specie transfers to SIPP and ISA
- Transfers to Spouse
- Use of annual exemption
- Interaction with wider wealth planning
Trusts and Administration
- Use of Trusts
- Use of Administrators
- Funding share plans
