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HMRC internal manual

Employee Tax Advantaged Share Scheme User Manual

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HM Revenue & Customs
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Introduction to Tax Advantaged Share Schemes: Setting up a scheme: Establishing a scheme

It is important to note that the scheme has to be established by a company before it can grant options or make awards under the scheme or plan. This means the scheme must have come into existence from a legal point of view and documentary evidence of this will need to be retained.

Companies should take their own legal advice on how a scheme should be set up. A scheme is usually established by resolution of the company’s shareholders in a general meeting. In some cases directors may have powers to establish a scheme under the company’s Articles of Association or under the authority of a shareholders’ resolution. ESSU technical advisers will not advise on the powers of directors, which are a matter of company law.

More detailed guidance can be found in respect of each of the schemes in the section of this manual that deals with the individual schemes (ETASSUM20000 for SIP, ETASSUM30000 for SAYE and ETASSUM40000 for CSOP).