Employee share schemes - problem or opportunity?

    Thomas Dalby, director at Abbey Tax division, Gabelle, has written a new book which seeks to break down the perceived complexities of employee share schemes and encourage more businesses to take advantage of the tax benefits.

    Employee Share Schemes – Equity Reward for Private Companies offers straightforward and practical guidance for employers and their professional advisers considering the implementation of an approved share scheme. The underlying principle of Finance Act 2003 is worked out through a series of schemes, each with its own advantages and restrictions.    

    The book clearly explains the important gains these schemes can bring including tax benefits and longer term employee retention – two important considerations overlooked by numerous companies worried about what they see as the potential difficulties associated with employee share initiatives. 

    Thomas Dalby, who has more than 20 years’ experience as a chartered tax adviser and as an employed barrister, said: “Employee share schemes can be a brilliant way for small and medium sized companies to attract and keep the best people.

    “Many companies and advisers are put off share schemes because the rules appear to be complex and there is a perception that employee shares are a problem, not an opportunity.

    “I wanted to write something aimed at employers and advisers to try to answer their questions about share schemes in a clear and accessible way and to help employers make the most of the generous tax benefits written into the legislation.”

    Employee Share Schemes – Equity Reward for Private Companies is available now and can be purchased direct from the publisher, Claritax, priced £85.

    Special offer: 10% discount for Gabelle and Abbey Tax clients. Use code 'Gabelle10'.

    Enquiries:

    For further information, photos and interview requests, please contact:

    Nicky Howard, Marketing Manager        
    T:  01788 702844
    E:  n.howard@abbeytax.co.uk 

    Note to Editors:

    About Thomas Dalby
    Thomas is a director at Gabelle. He is a barrister and chartered tax adviser and has been in the profession since 1996.

    He joined Gabelle from Deloitte in 2014 where he was a member of a specialist employer team, advising clients ranging from FTSE 100 multinationals and established family companies to start-ups on employee reward structures.

    Thomas has worked with clients on the whole spectrum of employee share ownership including EMI, growth shares, joint ownership shares, statutory share plans and bespoke share-owning arrangements.

    He has extensive experience in dealing with employee benefit trusts including advising clients on mitigating their exposure to tax under the disguised remuneration rules and negotiating settlements with HMRC.

    Finance Act 2003
    The current regime for taxing employee shares can be traced back to FA 2003. This Act represented a complete revision of the relevant rules and substantially amended the freshly re-written Income Tax (Earnings and Pensions) Act 2003.

    The underlying principle of Finance Act 2003 is that value "gifted" to an employee is taxed as employment income, while organic growth in the value of securities benefits from capital treatment.

    About Abbey Tax
    Founded in 1996 and based in Rugby, Abbey Tax is one of the UK's leading providers of fee protection and tax and funding consultancy services to accountancy firms. The business works with over 3,000 accountancy practices and their clients across the UK.

    Abbey Tax is a trading division of Abbey Tax and Consultancy Services Limited, whose ultimate holding company is Markel Corporation.

    For more information about Abbey Tax, please refer to www.abbeytax.co.uk.

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