The Growth Plan 2022 announced by the Chancellor of the Exchequer includes some changes to the employee share schemes, a summary of which is set out below. Company Share Option Plan (CSOP) Perhaps the most significant change announced in the Growth Plan 2022 affects CSOPs. In particular, the individual limit is being increased from £30,000…

October 12, 2022 Read more >

According to the press, Goldman Sachs economists are predicting a recession later this year and that UK inflation will rise to more than 22% next year. The pound is weak against both the US dollar and the euro. Questions are being asked about how can businesses, communities and individuals survive this latest economic crisis. Inflation…

September 15, 2022 Read more >

HM Revenue & Customs have recently updated the Employment Related Securities Manual at ERSM30450 and ERSM30460, which relate to the making of joint elections under section 431 of the Income Tax (Earnings and Pensions) Act 2003 (Section 431 Election). These updates try to address some helpful practical points in relation to making Section 431 Elections.…

September 13, 2022 Read more >

On the 12th July, the ESOP Centre hosted a members’ webclave titled “Are Broad-Based Share Plans Still Fit For Purpose?”. The guest speakers covered a number of topics and issues affecting broad-based share plans today. An employee share scheme is a powerful tool for employee retention and alignment of stakeholder interests. As employment practices are…

July 19, 2022 Read more >

On 16th June 2022, HMRC published the Employment Related Securities Bulletin 43 (Bulletin). The main content of the Bulletin relates to the bonus rate mechanism for Save As You Earn (SAYE) Scheme. In the Bulletin HMRC acknowledged that the current mechanism for calculating the bonus and interest rates (which incidentally has remained at 0% since…

June 29, 2022 Read more >

On the 23rd June, The ESOP Centre hosted a webinar titled ‘Share Schemes and the Impact of Inflation’. The comprehensive presentation covered a number of topics including the dangers of stagflation, the cost-of-living crisis and how employee share schemes may be used to combat this issue, with a particular focus on the economics of the situation.…

June 29, 2022 Read more >

On 26th April 2022, the Court of Appeal passed its judgement over two appeals (HMRC v Atholl House Productions Limited and Kickabout Productions Limited v HMRC) relating to the application of the IR35 legislation. In brief, the IR35 legislation provides that where an individual personally performs their services to the client through an intermediary and…

May 25, 2022 Read more >

Many readers will be aware that last month, the IA issued its response to two issues arising from Russian sanctions and the economic impact of Russia’s invasion of Ukraine, namely: LTI award sizes in light of the recent fall in share prices; and Whether a six-month delay in setting LTI targets would be appropriate, owing…

April 19, 2022 Read more >

An annual return needs to be submitted by all companies who have an active employee share plan registered with HMRC. This includes tax-advantaged share plans such as EMI, CSOP, SAYE and SIP as well as any non-tax advantaged plans or arrangements such as unapproved options, conditional share awards (or restricted stock units), growth share plans…

April 19, 2022 Read more >

Plus recent HMRC publications in the employee share scheme/employment-related securities arena. Spring Statement 2022 From 6 July 2022, the starting thresholds for national insurance contributions (NICs) will rise to £12,570; this is currently £9,880 (April to June 2022), a rise from £9,568 per annum last tax year Employees earning between £242 (£190 from 6 April…

April 19, 2022 Read more >

Investors often choose to invest in companies with which they feel an alignment; at the same time, companies aim to develop cultures, policies and strategies which are aligned to the interests of the type of investors they wish to attract and whose support they need. Best practice for creating the right balance to reach such…

April 19, 2022 Read more >

On 18th November 2021, the Investment Association (IA) wrote a letter to the chairs of the remuneration committees (Rem Com) in the FTSE 350 outlining its updated principles of remuneration and highlighting IA members’ focus areas for the 2022 AGM season. The main changes to the IA principles are as follows: General Guidelines Levels of…

December 7, 2021 Read more >