The QCA's Share Schemes Expert Group has updated their information for QCA member companies to help navigate the current Covid-19 circumstances in relation to all-employee share schemes.
The note provides an update on the range of possibilities available to companies operating tax-advantaged Save As You Earn plans (SAYE) and Share Incentive Plans (SIP) and provides clarification for participants on furlough. In addition to this, the note now also covers information on Company Share Option Plans (CSOP) and Enterprise Management Incentive (EMI).
Questions covered are:
Company Share Option Plans
- Do options remain qualifying for furloughed employees?
Enterprise Management Incentive
- Is being furloughed a disqualifying event?
- How have the granting of options been affected following valuations?
Save As You Earn plans
- Can employees change the amounts they contribute?
- Can employees 'pause' the amounts they contribute?
- Can employees withdraw their savings?
- Can employees who are 'furloughed' under the Government's Coronavirus Job Retention Scheme continue to participate in SAYE?
Share Incentive Plans
- Can employees change and/or 'pause' the amounts they contribute?
- Can a company terminate the SIP?
- Can employees who are 'furloughed' under the Government's Coronavirus Job Retention Scheme continue to participate in the SIP?
We hope you find this guide useful, but please note that it is for general information purposes only and is not a substitute for specific legal advice in relation to the operation of your share plans.
If you have any comments or questions, please contact Jack Marshall.