Employee Share Schemes

Employee Benefit Trusts

Employee Benefit Trusts have wide applications. Among them are the warehousing of shares for use with an employee share incentive plan and the creation of an internal market in the shares of a private company. 

In relation to employee share plans there are basically two types of trusts i.e. Qualifying Employee Share Ownership Trusts ("Quests") and the "case law" Employee Share Ownership Trust ("ESOT"). Relief in respect of contributions to Quests have been withdrawn in relation to accounting periods beginning on or after 1st January 2003.

Following a change in the legislation, relief for a contribution made to an ESOT is restricted in that it is available only when and to the extent that a benefit is paid out of such contributions in a manner which gives rise to a charge both to income tax and NICs or would have if the duties of the employment was carried out in the UK and the employee was resident in the UK for NIC purposes.

For further information please complete the enquiries form.

This briefing has been prepared for general guidance only and should not be acted upon without specific advice. Please contact us if you need further information.

ESS Consultants is a trading name of Elman Wall Limited, company number 3261197, registered in England and Wales. Elman Wall Limited is registered to carry on audit work and regulated for a range of investment activities by the Institute of Chartered Accountants in England and Wales.