Growth Shares
Boost your benefits package for key employees by offering them growth share plans.
Your top employees are one of your most valuable assets – make sure you look after them by offering them a chance to own a stake in the business they’re helping to build. Our expert corporate solicitors can explain to you how growth shares work, and help you structure a scheme so that you and your team achieve the maximum benefit of a flexible plan with no statutory requirements.
What our clients say
We pride ourselves on delivering an excellent service for clients, but don’t just take our word for it.
I can’t sing our solicitor’s praises enough: fast, efficient, sensible and supportive. A quick and fair resolution to all queries that we have worked on together and would thoroughly recommend her to any of my contacts.
Easy to work with, quick responses, quick feedback if changes needed, gets things done. We consider the arrangement very worthwhile for Storelectric and would recommend to others.
Reward your employees in a tax-efficient way without lots of ongoing admin |
While growth shares are tax-efficient, they are not ‘tax-advantaged’ so they don’t need clearance from HMRC, and you don’t have to tell the Revenue about them, saving you time and money. Also, tax-advantaged schemes must meet specific legal requirements set out in the tax legislation in order to receive tax relief, such as EMI share schemes. Growth shares schemes are simpler to operate.
Preserve your cash-flow |
Offering employees equity is a very cash-efficient way to reward them. Unlike bonuses, you don’t need to raise funds or set aside valuable cash-flow to offer them a significant benefit.
Gain a competitive edge |
Companies with employee incentive arrangements are proven to be more successful overall than businesses that don’t. Get ahead of the competition (and attract and reward your talent) by setting up a scheme that will incentivise them well.
Protect investors and existing shareholders as well as your own stake |
When you offer growth shares, your employees will become immediate shareholders. It’s vitally important that you, your existing shareholders and investors are protected from the dilution of your current share value, so that growth shareholders only benefit in an uplift in share price after they acquire their shares or after a threshold value has been reached. We can show you how to do this, liaise with your shareholders, allay any concerns they may have and amend all your existing agreements with them to reflect the new scheme.
Save money on tax |
If your employees will be paying full market for their shares, they’ll pay no tax. They’ll only pay capital gains tax on any increase in value, and this is paid at a rate that’s less than income tax.
Why choose Harper James Solicitors?
We can assist you with strategic analysis of your business and help you understand all the employee share scheme options open to you. Beyond your requirements for support with share plans you can also lean on our experienced and integrated team of solicitors across a range of business legal services. From drafting commercial contracts, to data protection audits, corporate governance support and employment policies and procedures. Harper James Solicitors’ aim is to provide legal support for start-ups and high growth businesses quickly, with affordable and transparent legal subscription plans delivered by experienced, partner level solicitors.
Plus, our corporate team have been recruited from top 100 UK law firms or from large international businesses and have advised clients both as external advisors and as in-house counsel. Find out more about the team here:
