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Share Incentive Plans are all-employee, tax-advantaged share ownership plans. Companies can award each participant free shares worth up to £3,600 per year.

Employee Benefit Trusts (EBTs) are trusts which can be established by companies to help with the operation of their employee shareplans. EBTs can be established onshore or offshore and can be funded by loans or contributions from group companies.

• Enterprise Management Incentive Plans provide for the grant of flexible, tax-advantaged share options and are designed for growing companies with fewer than 250 employees and gross assets not exceeding £30 million;
  
  
• EMI options can be granted at a discount to market value;
  
  
• Eligible employees can receive EMI options worth up to £250,000 in any three-year period.

WHAT ARE ENTERPRISE MANAGEMENT INCENTIVE PLANS?

Under an Enterprise Management Incentive (EMI) Plan a company can grant tax-advantaged share options to selected employees. The rules governing the terms of EMI options are very flexible which means they can be tailored to deliver the desired incentive and reward.

Also known as 'SAYE Option Schemes' or 'Save-As-You-Earn Schemes'

Company Share Option Plans are the traditional method of giving employees a personal interest in the future success of a company. Options are granted at their current market value and can be tax-advantaged up to £30,000 per person.

Amidst the negative publicity surrounding incentives with 'unacceptable' tax-avoidance features, it is important to remember those plans that can be designed within tax-favourable HMRC rules. Although there are limits on the levels that can be awarded under such plans, the benefits of tax-advantaged status should not be underestimated.

2017 is the year in which many UK quoted companies will, once again, have to put their remuneration policies to a binding shareholder vote. Although the 2017 AGM season is still some way off, early preparation is advisable, especially in light of increasing shareholder interest in executive remuneration.

Travers Smith’s cross-disciplinary ‘Market Impact Group’ is drawn from legal specialists who are all leaders in their fields and have first-hand experience in advising clients in the financial sector at times of market stress.

Following the UK's referendum vote in favour of leaving the EU and the appointment of Theresa May as prime minister, this briefing considers the key legal implications for the commercial real estate sector.