Special tax rules for trusts and share schemes for employees were introduced many years ago, originally to encourage businesses to incentivise their employees by allowing them to benefit from the growth of their employer. Over the years, this tax landscape has become more complex.
Commercially, employee trusts and share schemes still achieve their original aim; they enable employees to share in the success of the business and incentivise them to remain with the employer company.
There are a range of options available, from HMRC approved schemes through to issuing options over shares held within an unapproved employee benefit trust.
If you are considering setting up some kind of employee incentive structure, or looking to reward key employees, then we can explain the different routes to you and advise on which best meets your commercial objectives in the most tax efficient way possible.
We also assist those who are looking to refresh (or end) existing structures to ensure that they are as efficient. If you are reviewing the arrangements that you currently have in place, or would like some advice on whether you could be using the structures more effectively, then please give us a call.