Advice regarding Company Share Option Plans (CSOP)

Employee share schemes give your staff a stake in your business, which can in turn lead to an improvement in its performance. They also encourage employee loyalty and can be an attractive benefit for potential recruits.

With Company Share Option Plans, employers can grant employees options on up to £30,000 worth of shares each.  If they sell the shares at a profit, no income tax or National Insurance contributions (NICs) are due on the gains if certain conditions are met. Capital Gains Tax may be payable if gains exceed the employee’s annual allowance.

Your business can get corporation tax relief for the costs of establishing and administering the CSOP and for the cost of providing shares under the scheme. Before granting options, you must obtain HM Revenue & Customs’ (HMRC) approval.

For further information on Company Share Option Plans and other employee incentive schemes which may suit your business, please contact your PK Group Advisor.  If you have not worked with us before, then please do get in touch today and one of our specialists will be happy to have a chat about our service.