Share Options and Employment Related Securities

The course provides an understanding of current tax legislation and key accounting principles on employee share schemes and Employment Related Securities and is particularly suitable for those advising owner-management companies on related matters.

The content will include:

Share Options

• Why companies should embrace share options
• Tax efficiencies of Enterprise Management Incentives
• Inventive ways of applying Enterprise Management Incentives
• Exploring the tax-advantageous Company Share Option Plan
• How the Share Incentive Plan meets private company needs
• Understanding Sharesave in the quoted and the unquoted company
• Dispelling the myth over phantom share option schemes 
• Various forms of growth shares for powerful employee motivation 
• Linking share schemes to the employee share trust
• Succession planning and company exits through share schemes
• Using share schemes for management buy-outs 
• The corporation tax deduction available through share schemes

Employment Related Securities

• The development of the tax legislation
• The reason for these provisions in Finance Act 2003
• The meaning of employment related securities
• How to identify Restricted Securities and the tax treatment
• When to make Section 431 and Section 425 tax elections 
• How to identify Convertible Securities and the tax treatment
• Securities with artificially depressed market value
• Securities with artificially enhanced market value
• How to identify notional loan arrangement and the tax treatment
• Chapter 3D charges where sale of shares for more than market value
• Post-acquisition benefits from securities
• The dangers of creating Alphabet Shares to differentiate reward
• The tax treatment of earn-out arrangements
• The reporting of employment-related securities

Share-Based Payment Accounting

• The key principles in applying share-based payment accounting
• The illustration of the accounting principles through examples