Share schemes - introduction
In this introduction to share schemes, you'll learn how employers use share incentives to reward and retain employees, and why understanding the tax implications matters for your TX exam.
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In this lesson
- 0:00 Employment income and share schemes overview
- 0:33 Termination payments and personal service companies
- 1:49 Why employers offer share schemes to employees
- 2:28 Tax advantaged versus non-tax advantaged schemes
- 3:03 Share option schemes explained
About this lesson
You'll explore the difference between tax-advantaged and non-tax-advantaged schemes, then focus on share option schemes—where employees gain the right to buy shares at a fixed price on a future date. The lesson covers the three key stages: grant (when the right is given), exercise (when shares are purchased), and sale (when shares are sold), each with different tax consequences. This foundation prepares you to advise clients on the most tax-efficient share scheme structures for their business needs.
Duration: 4m
Transcript
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