An overview of share options without tax advantages
Can we choose which of our employees participate?
Yes, you can choose any employee or executive director to participate.
Can my company have an unapproved plan or LTIP?
In this table we attach our own ratings for unapproved share options for tax efficiency, ease of setting up and overall incentive and reward value:
|Tax efficiency (individual)||Tax efficiency (Company)||Ease of setting up||Overall incentive reward value||Other issues|
|Income tax on option gains. May also be NICs||CT deduction on option gains.||Must be registered with HMRC.||Simple to explain, no risk, not tax efficient.||Can be difficult if company sold for shares, earnout, or deferred consideration|