Introduce, manage and review an employee share scheme

Key points

• Share Incentive Plans, Sharesave (also known as Save-As-You-Earn or SAYE) schemes and other types of share schemes provide employees with the option of buying shares in the company for which they work, usually in a tax-efficient and low-risk or risk-free manner.
• An employer should seek specialist advice before attempting to set up an employee share scheme or an employee share ownership plan as schemes approved by HM Revenue and Customs are tightly regulated and the legal framework is constantly changing.
• The employer will need to consider how an employee share scheme will meet its reward objectives, whether or not there is evidence of employee interest in such a scheme and how it will be run.
• Employers should routinely check that their employee share scheme meets regulatory requirements, using specialist advice where necessary.

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