Tax Benefits and Obligations Across Employee Share Schemes

Employee share schemes offer great tax benefits, but each scheme has its own rules. Here’s a quick look at the tax benefits and obligations for different share schemes:
- EMI: No income tax or NICs on grant or exercise if options are at market value. CGT is 10% after two years. Companies must notify HMRC within 92 days.
- CSOP: No income tax or NICs if options are held for 3+ years at market value. Pay CGT when shares are sold.
- SIP: No income tax, NICs, or CGT if shares are held for 5 years.
- SAYE: No income tax or NICs on discounted share price after the savings period. Pay CGT on any gain when shares are sold.
- Non-Approved: Growth Shares, RSUs, and EOTs have limited tax benefits. Income tax and CGT apply on gains.
These rules help ensure your scheme is tax-efficient and compliant.