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The company may deduct the market value of providing free and matching shares and any additional costs of partnerships shares.191 There is no deduction for dividend shares as such.192Allowable deductions also arise for costs of setting up the plan and of various contributions althogh some of these deductions may be withdrawn.193 |
16A.9.1.1 The Employee194 |
Eligible employees must work for the company for a substantial amount of their time, ie 25 hours or, if less, 75% of their working time;195 they may be inventors, scientists or experts in raising finance. The company may offer up to £3 m worth of share options to help them recruit and retain the people that they need to make their company successful and grow. |
There are rules on relationship between this and other share schemes.196 The employee must not have a material interest, ie control of 30% or more of the ordinary share capital.197 |
The option must be capable of being exercised within 10 years;198 a charge arises if it is not exercised within the period.199 The option may be conditional provided the condition can occur within the period. The option must be over the ordinary share capital of the company.200 |