Employee share incentives can be a valuable tool in motivating, rewarding and retaining employees. They can also be tax-efficient, with gains liable to capital gains tax (generally at 18% but possibly at 10%) compared with an income tax rate of 50% (from 6 April 2010) and no national insurance contributions. However, there are a number of alternatives and, in a complex area, it is easy to make expensive mistakes.
Read our latest factsheet which covers the various types of scheme.