Illustration - share scheme

In this lesson

1. 0:00 Share schemes illustration introduction
2. 2:00 Non-tax-advantaged scheme taxation
3. 4:17 Company share option plan taxation
4. 6:00 EMI scheme and discount treatment
5. 7:59 Business asset disposal relief for EMI

About this lesson

This is essential for the Advanced Taxation paper, where share scheme scenarios appear regularly in both objective tests and case studies. The video works through a detailed illustration comparing three types of schemes: non-tax-advantaged schemes, tax-advantaged company share option plans (CSOP), and Enterprise Management Incentives (EMI). For each, you'll see how to identify what's taxed at exercise versus disposal, how to calculate employment income and capital gains, and when reliefs like business asset disposal relief apply. The scenario includes a quoted company, an additional rate taxpayer, and a discount on grant—all common complications that test your understanding. You'll learn why the same transaction produces different tax outcomes depending on the scheme type, and how to spot key details like holding periods and discounts that change the calculation. By the end, you'll be confident tackling share scheme questions in your exam, knowing exactly which dates matter, which reliefs are available, and how to structure your answer clearly.

Duration: 9m