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Employee Share Plans Software Limited ("ESP-Software Ltd")

Our Aim

ESP-Software evolved from the need to make the administration of employee share plans simple and to give control of the employee share plans to companies wishing to administer their own plans. Here, you can learn more about us.

Click here to learn more about The Share Incentive Plans Software (SIPS). And see the demonstration video.

For more information please contact us:
View high quality video or Download
FAQ: How much CGT will I have to pay and when?
You calculate the gain on your shares by deducting from the sale price

• the exit value (their value on the date you took them out of the plan) plus
• costs of disposal, for example, stockbroker’s commission.

Taper relief may reduce your gain for CGT purposes.

If your gain after taper relief (plus any other tapered capital gains you make in the same tax year) is no more than the annual exempt amount, you will not have to pay any CGT. Otherwise, you will have to pay CGT on the excess over the annual exempt amount.

If the sale price is less than the exit value, you will make a loss for CGT. You can set the loss against capital gains before taper relief of the same year and carry forward any excess to future years.
Source: Inland Revenue

A Share Incentive Plan, provided that it is approved by the HM Revenue & Customs, can provide tax advantages to both the employees and the company directors. One of the obligations to get your share incentive plan approved is to invite all of your employees.

The Share Incentive Plan legislation provides for three main types of plan shares to be used. They are:

  • free shares - employers can give each employee free shares worth up to £3,000
  • partnership shares - employees can use up to £1,500 per year out of pre-tax and pre-National Insurance Contributions (NICs) pay to buy partnership shares
  • matching shares - employers can give matching shares at a ratio of up to two matching shares for each partnership share bought by the employee
  • dividend shares - employees may be allowed to use up to £1,500 of dividends from their plan shares each year to buy further shares in the company through the plan

£9,000 each year - A tax free investment as shares should be very encouraging!

All an employee needs to do is to keep the shares in the plan as long as possible (usually 5 years) to pay less tax and NICs when he finally takes them out.

Please refer to IFS ProShare's briefing on SIPs for more information.

Beat the recession!

Beat the recession and save on outsourcing costs by taking control and managing your SIP in-house with our SIP software.