The aim of employee shares schemes is to try and incentivise employees to work harder and more effectively in their employer’s cause by providing them with an equity stake in the business. The majority of shares schemes involve the use of share options that the employee will be able to exercise at some point in the future and benefit from the growth in the value of the shares without having to lay out any cash at the start of the option period.

Remember that tax rules are subject to change. The FSA does not regulate employee share schemes or tax advice.Last Updated