BIM44195 - Measuring the profits (specific rules & practices) - receipts & deductions: specific deductions - employee share schemes: providing shares - accounting periods starting before 1 January 2003: accounting for employee share ownership (ESOP) trusts - subsidiary companies in group schemes, introduction

There are two main kinds of ‘group schemes’ set up by the parent company of a group to provide its shares to employees of any company in the group:

• UK parent companies typically set up an employee share ownership trust through which shares in the parent company are provided to employees of group companies, funded by contributions from their employing companies, see BIM44200;
• if the employing company is a member of a multinational group of companies the parent company may charge the employing company (an ‘intra-group recharge’) for allowing its employees to benefit under a global group scheme, see BIM44225.