Many companies will seek to motivate staff through the provision of employee share incentive plans either using tax approved schemes such as SAYE, CSOP, EMI and SIP or by using unapproved schemes.

The approved schemes offer tax advantages but have conditions to be met which mean they lack the flexibility of the unapproved schemes.

A large number of factors will usually be considered in implementing an employee share plan. The outbreak of Covid 19 has impacted the UK and the world economy with the result that historic share incentive plans may no longer be suitable.

Many schemes may find that their performance conditions are no longer appropriate. The result being that the scheme will no longer act as an incentive.

It is noted it may not be possible to amend historic awards and new awards may need to be issued. Depressed share prices may provide the opportunity to offer new incentive opportunities.

HMRC have announced changes to the approved share schemes to assist companies effected by Covid 19, including payment holidays and changes to definitions to deal with employees having reduced hours.

If you would like any more information, please get in touch with your usual Lambert Chapman contact.


The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.

Lambert Chapman Chartered Accountants

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