Shares Schemes Flashcards
EMI Shares conditions
Options must be exercised within 10 years
CGT on sale if shares discounted
Small Trading company with qualifying trade
Gross assets < £30m
value of shares < £3m
Less than 250 full time employees
Must not be controlled by another company
Only employee’s > 25 hours a week
Employee’s > 30% shareholding disallowed
Max value of shares < £250,000
EMI: Exempt trades
Finance, legal , farming and property development
EMI: Disqualifying events
51% Subsidiary
Non trading company
employees not eligible
EMI Options exercised before 90 days
Retains tax advantage
Value of shares - Amount Paid @ 20%/40%/45%
EMI Options exercised after 90 days
Value of shares - amount paid + increase in share value.
SIP Criteria
Quoted company to all employees
Only award £3600 shares per annum
No IT/NIC on Issue
SIP < 3 Years
IT @ Market Value
SIP > 5 Years
No IT/NIC on withdrawal
CSOP Criteria
Specific employees
30% shareholders not allowed
Max shares = £30,000
Benefit of CSOP
Shares are not issued at discount, employees benefit from the increase in company value.
No IT on exercise
Readily convertible
Quoted shares - subject to NIC
EMI Shares - CGT
BADR applies
Claim via ITR
Dates for elections
CGT - EMI
Reason to set up a scheme
Reward employees
Incentivise employees to work hard
Retain employees
