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Tax-advantaged share schemes

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HMRC has published a report on research it commissioned to better understand the motivations for, and barriers to, employers and employees participating in tax-advantaged share schemes (TASS).

Key findings from the research include:

  • employers report that TASS have a positive impact on employee engagement and are important tools for recruitment and retention of key staff;
  • employees who participate in TASS often feel more ‘invested’ in the success of the company;
  • employees in more junior roles tend to have less understanding of shares and the tax incentives;
  • Save As You Earn schemes are considered easy for employers to operate and for employees to understand, with limited risk and affordable monthly contributions, although the three-year minimum contract period is a potential disincentive;
  • share incentive plans provide an effective way to engage staff in senior roles, although the structure of SIPs can be difficult for employees to understand; and
  • company share option plans and enterprise management incentives are helpful to retain key staff, but they can be difficult to understand for both employers and employees.
Issue: 1500
Categories: News
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