Richard Rolls of KPMG LLP (UK) considers deferred share plans as a tax-efficient alternative to unapproved share options
Many companies which do not meet the requirements for enterprise management incentive (EMI) options ask what other share incentive arrangements can be adopted to deliver similar tax benefits for employees. One alternative is a deferred share plan which can offer similar income tax and NIC savings on the growth in value of employee shares.
Main Points
Under a deferred share plan employees pay full value for their shares but payment of the acquisition price is deferred. In the case of companies looking to exit the plan will typically be drafted to provide for the acquisition price to be paid...
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Richard Rolls of KPMG LLP (UK) considers deferred share plans as a tax-efficient alternative to unapproved share options
Many companies which do not meet the requirements for enterprise management incentive (EMI) options ask what other share incentive arrangements can be adopted to deliver similar tax benefits for employees. One alternative is a deferred share plan which can offer similar income tax and NIC savings on the growth in value of employee shares.
Main Points
Under a deferred share plan employees pay full value for their shares but payment of the acquisition price is deferred. In the case of companies looking to exit the plan will typically be drafted to provide for the acquisition price to be paid...
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