Tax planning

Share options

Whether you are an employer looking to set up a scheme to offer options for your team or an employee who has been given share options then we have many years of experience at dealing with the tax and legal issues involved

Setting up a share option scheme

As an employer you may wish to offer employees an incentive by setting up a share option scheme. There are various different ways you can do this depending on your vision for the company and the future role of your employees.

websters can advise you as to the most appropriate share option scheme for your company and employees and assist you in the setting up of most share option schemes.

Benefiting from Share Options

As an employee with share options, our team of legal and tax advisers can advise you as to the implications of the scheme for you personally and ensure that you keep on top of any taxation obligations arising from the granting and exercising of share options.

A share option is a right to be able to buy shares in the future at a price which is fixed today (the exercise price). Unless you set up a special scheme then the difference between the exercise price and value of the shares when you exercise will be liable to income tax - even if you do not sell the shares you acquired immediately.

EMI schemes are the most common form of special share schemes which have a much better tax treatment. You will only be liable to capital gains tax when you sell the shares.