Employee Remuneration and Retention Planning

Employee Remuneration and Retention Planning

« back to taxation services

Many firms want to ensure that they keep key members of staff and enhance profitability by giving employees a share in the business. Our experience shows that the gift of shares to an employee is not only costly in terms of tax, for both the employer and the employee but usually ineffective from motivational and retention purposes also.

Over the years the Government has, helpfully, introduced a range of tax efficient ways in which to pass shares to employees that ensure that the shares are passed to them in a tax efficient manner for the employee and the company. But, because the shares are passed via an option agreement (a promise of reward in return for meeting targets), then the company will also benefit.

Interestingly, the company potentially can benefit on two fronts. Not only should the share incentive enhance growth within the company for the business owners but the transaction can also be structured in a manner that ensures a corporation tax deduction for the growth obtained.


Please contact Kevin Taylor or Chris Watson on 01772 430000 or email:

Kevin Taylor kt@wnj.co.uk  or Chris Watson chris.watson@wnj.co.uk for further information.