IN September 2015 HMRC published Research Report 372 on the topic of “growth shares.” This is a type of share given to an employee as part of their reward package and can also be known as “flowering shares.”
Of particular interest to firms with ambitious growth plans and clear exit strategies they incentivise management teams to increase the value of the company so that they can share in an enhanced return on the sale of the business.
The report identified financial and emotional benefits to employees holding such shares whilst employers benefited from what was described as ‘protected incentivisation’ – ie give nothing away until there is something of value to be given.
The tax benefits and minimal financial outlay are also attractive incentives to businesses.
If you would like to know more about how growth shares could benefit your business contact Zoë Cunningham on 01256 486871 or zoe.cunningham@rsmuk.com.
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