United Kingdom ๐Ÿ‡ฌ๐Ÿ‡ง

Country guides for offering equity compensation to remote employees

Looking to offer equity to team members inย 
the
United Kingdom ๐Ÿ‡ฌ๐Ÿ‡ง
?
Book a demo

Introduction

Direct employees

Can receive NSO?

โœ… Yes!

โ€

General taxation

Depends on type of share scheme. For EMI: No taxation before sale of the shares, unless exercise price is lower than actual market value of the shares at grant, and as long as no disqualifying events occured.

โ€

General tax, reporting & legal paperwork difficulty score

๐Ÿคฏ ๐Ÿคฏ ๐Ÿคฏ

โ€

Tax advantages

Several local tax-favored schemes available, depending on company maturity stage: EMI (Enterprise Management Incentives) in earlier stage companies, then CSOP (Company Share Option Plans) for later stage companies. ย 

EMI (and CSOP) are subject to several conditions, incl. maximum number of employees, equity amount, working time, etc.

Tax-favored schemes require the adoption of a sub-plan to the main equity incentives plan.

โ€

Warning point

UK share schemes subject to a lot of formalities (but can be worth it for EMI/CSOP as they are tax favorable)

EoR employees

Can receive NSO?

โœ… Yes!

โ€

General taxation

Taxation differs depending on contractorโ€™s status. ย Tax advisor assistance is highly recommended.

โ€

General tax, reporting & legal paperwork difficulty score

๐Ÿคฏ

โ€

Tax advantages

No tax-favored scheme available.

โ€

Warning point

-

Contractors

Can receive NSO?

โœ… Yes!

โ€

General taxation

Taxed as income at exercise.

Taxed as capital gain at sale (s431 election required at exercise to avoid part of the gain to be considered as regular income subject to NIC).

โ€

General tax, reporting & legal paperwork difficulty score

๐Ÿคฏ ๐Ÿคฏ ๐Ÿคฏ

โ€

Tax advantages

No tax-favored scheme available.

โ€

Warning point

UK share schemes subject to a lot of fomalities and are not easy to understand and navigate.

Want to know more about equity in

the

United Kingdom ๐Ÿ‡ฌ๐Ÿ‡ง

?

Discover everything you need to know about taxation and reporting obligations for you and your team in

the

United Kingdom ๐Ÿ‡ฌ๐Ÿ‡ง

Get in touch

Let's get started

Just a few more details...

USA
Andorra
Argentina
Australia
Austria
Bangladesh
Belarus
Belgium
Bosnia & Herzegovina
Brazil
Bulgaria
Canada
Central African Republic
Chad
Colombia
Croatia
Cyprus
Czech Republic
Denmark
Ecuador
Egypt
Equatorial Guinea
Estonia
Ethiopia
Finland
France
Gabon
Georgia
Germany
Ghana
Greece
Hong Kong
Hungary
India
Indonesia
Ireland
Israel
Italy
Ivory Coast
Kenya
Latvia
Lebanon
Lithuania
Luxembourg
Malta
Mexico
Moldova
Montenegro
Morocco
Netherlands
New Zealand
Nigeria
Norway
Pakistan
Peru
Philippines
Poland
Portugal
Republic of the Congo
Romania
Senegal
Serbia
Singapore
Slovakia
South Africa
Spain
Sweden
Switzerland
Turkey
UAE
Ukraine
United Kingdom
Uruguay
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.