For Managers & HR » Equity incentives » Unapproved options

Employee share scheme - unapproved options

Unapproved options are not as tax efficient as HMRC approved employee share schemes and EMI options but do not carry the same restrictions.  Unapproved options and restricted stock awards are typically used in cases where it is not possible to obtain HMRC approval to an employee share scheme or the UK tax approved limits are exceeded.

Our commercial taxation solicitors work with companies and international groups looking to award options, restricted stock and other share incentives to UK employees.  We advise overseas companies on issuing unapproved options to UK employees.  

Expertise in advising on unapproved options:

  • Design of unapproved options

  • Taxation advice to the employer
  • Taxation advice in respect of employee tax liabilities under unapproved options and restricted stock
  • Exercise targets and performance conditions
  • Share valuation
  • Implementation of options over shares in overseas companies for UK employees
  • Employee benefit trusts EBTs
  • Long term incentive plans LTIP long term incentive plans
  • Share capital requirements and UK company law 

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