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Welcome!

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:
info@esp-software.co.uk.
View high quality video or Download
FAQ: What if I keep the shares after I take them out of the plan and sell them later?
Capital Gains Tax (CGT) may be due if you make a gain when you dispose of your shares or other assets. You can make gains up to the annual exempt amount each tax year without having to pay CGT. The annual exempt amount for tax year 2004/05 is 8,200. You have an annual exempt amount for each tax year but you cannot carry it forward if you do not use it.

Share Incentive Plans give you a special CGT advantage: if you keep your shares in the plan until you sell them, you will not have to pay CGT on any gains you make, however large.
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.



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