Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
16 Cards in this Set
- Front
- Back
|
EMI at discount |
Lower of: MV at grant and exercise less option price= employment income If negotiations for sale of company were underway then shares are likely to be readily convertible Fees incurred with EMI not tax deductible |
|
|
Criteria of EMI |
To selected employees up to 250k Must be a small company (30m assets less than 250 employees) Can't be in selected sectors Max 30% shareholding Must be exercised within 10 years |
|
|
Maximum value of EMI |
Up to £3m |
|
|
Tax charge on grant of EMI |
Nil |
|
|
Share incentive plan |
Dividends from plan shares can be reinvested Shares are held on trust Employer can give 2 matching shares for each partnership shares acquired. |
|
|
Free shares in SIP |
£3,600 of shares per year |
|
|
Partnership shares in a SIP |
Can buy partnership shares up to lower of 10% of salary plus bonus or £1800 |
|
|
Withdrawal of free shares from SIP |
Less than 3 years IT on MV at withdrawal 3-5 years IT on lower of MV at allocation and withdrawals More than 5 years No IT |
|
|
Withdrawal of partnership shares from SIP |
Less than 3 years IT on MV at withdrawal 3-5 years IT on lower of cost and MV at withdrawal More than 5 years No income tax |
|
|
Withdrawal of matching shares from SIP |
Less than 3 years IT on MV at withdrawal 3-5 years IT on lower of MV at allocation and withdrawal More than 5 years No income tax |
|
|
Withdrawal of dividend shares from SIP |
Less than 3 years Dividend used to buy shares become taxable 3-5 years No income tax 5+ years No income tax |
|
|
Cgt on SIP Shares |
Difference between date withdrawn from plan and date sold |
|
|
CSOP |
Doesn't have to be available to everyone No discount can be given Max value of shares held is £30k |
|
|
Income tax and NIC implications of CSOP |
If exercised within 3-10 years No income tax or NIC. If outside range then treat as non tax advantaged. |
|
|
Non tax advantaged |
Always an income tax charge |
|
|
CGT |
For all proceeds less cost less income tax |
