Table comparison of tax-advantaged (HMRC approved) share schemes

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

The following table summarises the main requirements, similarities and differences between the four current tax-advantaged or ‘HMRC approved’ share schemes. Further details including legislative background and HMRC guidance is supplied on the individual guidance notes covering each type of scheme. For details of potential corporation tax reliefs on share schemes, see the Relief for employee share schemes guidance note.

	Share Incentive Plan (SIP)	Savings Related Schemes (also known as ‘SAYE’ or ‘Sharesave’)	Company Share Option Scheme (CSOP)	Enterprise Management Initiatives (EMI schemes)
Basic scheme description	Employee obtains tax and NIC relief when buying employing company’s shares (‘partnership shares’). The company may also offer ‘free’, or ‘matching’ shares, income tax free. Shares are normally held in trust at least until retention periods have elapsed	Employee regular monthly net pay deductions (no tax or NIC relief obtained) put in savings account for (minimum) three years. Employee then has option to buy shares at up to 20% discount on initial market value, or can simply take their money back	Share option permits selected employee

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