Set up an employee share or option scheme
Set up an employee share or option scheme We will design a scheme that gives your team real upside without handing them a tax bill they cannot pay. Most employee share schemes have been intended for about a year before they exist. The reason for the delay is almost always the same. The tax treatment […]
What is a ‘Sweat Equity Agreement’, and when would you use one?
A Sweat Equity Agreement is an agreement between a business and someone providing services, whereby the service provider agrees to take equity in the business, rather than cash. Sounds simple? The devil is in the detail…
ESS – The ‘start-up’ concession
What is the ESS ‘start-up’ concession and how do employees qualify for it? If you are receiving shares or share options from your employer, you need to know how and when they will be taxed. This article covers when an employee is eligible for the ESS ‘start-up’ concession to reduce the tax they must pay.
ESS – How do you work out the ‘discount’ when you grant an interest under an ESS?
When setting up an ‘employee share scheme’ (ESS), employers often grapple with the tax implications of issuing ESS interests. However, these concerns only arise if there is a ‘discount’ at the time the ESS interest is granted. Working out if there is a discount, and what the extent of the discount is, are therefore two critical threshold questions.
ESS – Qualifying for ‘deferral’ of the taxable discount
How do you qualify to defer any tax otherwise payable on shares and options acquired under an employee share scheme? When does the deferral come to an end?