A tax efficient way of incentivising your employees

If you are thinking of incentivising employees by gifting them with shares in your business, the use of employee shareholder shares can be a tax efficient way of doing this. 

Whilst the employee will have reduced rights of employment, for income tax and national insurance purposes, the shares could be deemed to have a value of £2,000 (despite having been gifted) and there are no further tax implications on the ultimate sale of these shares, which could be a significant capital gains tax saving.  We can assist with the valuation of such shares and provide further details with setting up employee shareholder shares.

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