Share Schemes and Valuations

Enterprise Management Incentives (‘EMI’) are widely used by companies to attract and retain top talent, whilst aligning the interests of employees with those of the company and its shareholders. EMI…

Deeming provisions are common in tax provisions. As their names suggests, they ‘deem’ certain situations to satisfy specific conditions when they might not otherwise meet the strict wording of the…

HMRC launched a consultation into the taxation of Employee Ownership Trusts (EOTs) and Employee Benefit Trusts (EBTs) on 18 July which closed on 25 September. The consultation invited views on…

As a quick refresher, the main benefits of options granted under an EMI scheme are: Options can be granted without any upfront income tax liabilities for the participants. The valuation…

The deferred element of the consideration may be quantified at a later date, typically using a formula based on two to three years’ post-acquisition revenue or profits. These arrangements are…

From April 2023, qualifying companies will be able to issue Company Share Option Plan (CSOP) options to employees over shares worth up to £60,000 (double the current £30,000 limit) and…

EOTs have become so popular as a means of exiting a business that specialist lenders are even advertising EOTs as a specific funding line. We’ve advised on our fair share…

You’ve found an investor who sees the potential in your company and wishes to invest, however they will only do so if they can benefit from valuable tax reliefs via…

This is particularly important where there is no mechanism for agreeing the valuation of the shares ‘upfront’ with HMRC, an area which we are seeing come under scrutiny more and…