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Share Option Scheme

HSKS Greenhalgh Taxation Services were approached for advice by the owners of a rapidly growing business who wanted to retain and incentivise their key people by providing them with shares in the Company,

As giving shares can give the individual a tax liability, without the cash to meet it, and create issues if things do not go to plan, we advised the setting up of a share option scheme.  No tax issues arose and if the employee were to leave, the option would lapse.

What in fact happened was that the business was sold allowing all to share in their success whilst securing a low rate of tax.  The added benefit for this particular client was that the exercise of the options received generous tax relief which added over £1 million to the consideration received on sale.