Employee share incentive schemes offer businesses a tax efficient way to reward and motivate employees by aligning their interests with shareholders. There are three main types of approved share incentive schemes: free share schemes, partnership share schemes, and matching share schemes. Free share schemes allow companies to award employees up to £3,000 worth of shares per year. Partnership share schemes allow employees to purchase up to £1,500 of shares per year from pre-tax income. Matching share schemes provide two additional matching shares for each share an employee purchases. Combining all three schemes allows employees to acquire up to £7,500 worth of shares annually in a tax efficient manner. Shares are usually held in trust for three years before employees pay

1. Employee Incentives and Share Incentive Plans RM2 Presentation