Employee Share Ownership Pools (“ESOPs”) – Tax & Commercial Considerations

Course Details

1 hour Laura Lynch – Laura Lynch & Associates

Companies starting out with limited cash resources and keen to attract, motivate and retain key hires are increasingly offering remuneration in the form of shares in the company.   With company valuations and cash reserves potentially at a low point, and more new businesses setting up post-COVID, the opportunity to tax efficiently pay employees with equity is of interest to employers.

This online CPD course will deal with the key tax, legal and practical issues associated with giving employees shares or share options in an employer company.  We will cover the tax payment and reporting obligations of the employer company, along with key issues associated with valuing shares and options, which will be of particular concern for the accountant.  The conditions of the KEEP share option scheme for SMEs was updated again in the most recent Finance Act, as an attempt to increase take up of the scheme.  We will outline the new provisions and impact for SME clients.

The following topics will be covered

• This presentation sets out the key tax, legal, accounting and commercial considerations associated with giving employees remuneration in the form or shares or share options in the employer company
• We will cover various forms of share-related benefits and the tax treatment and reporting obligations for both the employer and employee
• We will set out reasons why one type of scheme would be chosen over the other
• We will outline the updated conditions of KEEP – the Key Employee Engagement Programme, which is a tax efficient share option scheme for SMEs
• We will discuss key issues to bear in mind when valuing shares issued to employees

CPD Course Facilitator