A share incentive plan is a tax efficient way of providing shares to employees. These plans can provide employees with up to £9,000 worth of shares, potentially tax-free whilst also increasing the employer’s after-tax profits.
There are three main types of shares that could be used:
- free shares;
- partnership shares; and
- matching shares.
Share incentive plans are clearly beneficial for employees and an effective way to incentivise staff. But there are benefits for employers as well, as they can claim relief on corporation tax for the value of shares provided under the plan.
We can work with you to develop, implement and manage the right share incentive plan for you and your employees. We can help you to efficiently navigate the tax landscape to maximise the offerings of your plan.