share option plan

Share option scheme: is a scheme that can be adopted by the company to help incentivise and retain employees or other individuals, such as advisors, by giving them a right to buy shares in the company at a fixed price at a future date. There are four tax-advantaged schemes approved by the HMRC in England and Wales, the most common of which are EMI and CSOP, which have certain tax advantages with regards to Income Tax and National Insurance Contributions, provided the relevant statutory conditions are satisfied. Individuals may find it helpful to consult the following HMRC Guidance for an overview of the approved schemes.