Tax Advantaged Employee Share Plans - Handling Maturities & Other Post-Implementation Events

Introduction

An employee share plan is in place, awards have been made and HMRC duly notified.

What happens then?

Sometimes, the awards mature but often the employee will leave, the company will undergo a reorganisation/takeover, there will be an initial public offering or the company will enter administration/liquidation.

The issues arising on each of these events can be complex and, if not identified and dealt with, can have an adverse impact, sometimes on the tax advantages, sometimes on the employees involved and sometimes on the post implementation event itself. This is especially the case in the current climate where the impact of COVID-19 may have affected usual share plan operation.

This live broadcast session examines the tax, legal and practical issues that typically arise when there is a subsisting tax advantaged share plan (such as an EMI, SAYE, SIP or CSOP) and a maturity or earlier post-implementation event occurs.

It covers both private and listed companies and is aimed at professional advisers who act for clients:

• ‐ Considering implementing share plans
• ‐ Who already have share plans
• ‐ Who have an acquisition strategy that may involve companies with share plans

It is also relevant to company secretaries, benefits managers and in-house personnel responsible for the implementation or day to day running and management of share plans.

What You Will Learn

This live and interactive session will cover the following:

• Dealing with a Maturity on a Tax Advantaged Share Plan:
• Confirming the conditions are met
• Sourcing the shares
• Accounting for the tax
• Dealing with the admin
• Considering the impact of COVID-19
• Dealing with a Departing Employee:
• The employee’s entitlement
• Tax implications
• Practical issues
• Dealing with Share Plans on a Takeover or Reorganisation
• The employee’s entitlement
• Tax implications
• Dealing with exchanges
• Cash cancellations
• The importance of communication
• Implications for the deal timing and documentation
• Impact of administration or liquidation on existing awards/options
• Coming back to the start - how the impact of a post implementation event can be lessened through smart design at the outset

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.