The Government has announced two changes to the tax advantaged Company Share Option Plan scheme. But what are all the Tax and Employee Share Schemes?

An overview

If your employer offers you company shares, you could get tax advantages, like not paying Income Tax or National Insurance on their value.

Tax advantages only apply if the shares are offered through the following schemes:

• Share Incentive Plans
• Save As You Earn (SAYE)
• Company Share Option Plans
• Enterprise Management Incentives (EMIs)

What are the changes to the Company Share Option Plan scheme?

There is currently a maximum employee share option limit based on market value at grant of £30,000. This will be increased to £60,000 for any new options granted from 6 April 2023. Existing options are unaffected by this change.

There will also be increased flexibility for share options granted from 6 April 2023 due to a removal of conditions around the class of shares used.

The Company Share Option Plan scheme is available to most UK trading companies as, unlike the Enterprise Management Incentives (EMI) share scheme, there is no size limit, and no restrictions over the nature of the business undertaken.

Do you need further guidance on the Company Share Option Plan scheme?

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