Aims and objectives
This module aims to provide students with a clear understanding of the basic principles of taxation of employee share ownership including the tax benefits offered under arrangements approved by the Inland Revenue. The module will also cover the corporation tax implications of employees’ participation in share incentive arrangements and the taxation of employee benefit trusts.
Learning outcomes
On the successful completion of this module, the student should be able to:
1	Describe the tax and social security consequences of an employee acquiring, holding and disposing of shares or an interest in shares in his employing company or its parent.
2	Describe the various Inland Revenue approved tax beneficial arrangements that exist. Such a description should include the advantages and disadvantages of these arrangements and the necessary conditions that must be satisfied in order to operate them.
3	Identify the cost implications of operating employee share incentive arrangements.
4	Describe the reasons why companies establish employee benefit trusts and the tax treatment of onshore and offshore trusts.
Synopsis of content
The module is broken down into the following sub-topics, which form ten units in all:
1	Introduction to the taxation of employee share incentives, Income tax, capital gains, NICs
2	Inland Revenue approved incentive plans, Company share option plans, Enterprise Management Incentives, Share Incentive Plans and SAYE-Sharesave
3	Unapproved incentive plansL-TIPs, restricted securities, convertible securities and post acquisition charges
4	Corporation tax deductions
5	Employee benefit trusts