Share Scheme Manual - SSM7.5

Share acquisition schemes

(Previously SE2877)

If a share acquisition scheme clearly provides in the scheme rules that employees will have to buy their shares at market value and the company's shares are listed on a recognised stock exchange it can be accepted that no Schedule E liability arises.

If the rules provide that the employees can purchase their shares at a specified discount to market value and the company's shares are listed on a recognised stock exchange, then the amount of the discount is acceptable as the measure of the Schedule E liability.

If the scheme clearly provides for dealing costs to be met for the employee, then even if the employee pays full price for the shares the provision of the dealing service will be a benefit under S154, and should be returned by the company on P11D.

For listed shares the company's statement as to the market value of the shares on a particular date is usually acceptable. If necessary, however, the value can be checked with the Employee Share Schemes Unit using form P388.

For the purpose of share acquisitions assessable as emoluments it is acceptable for market value to be

• computed as in CG59510 onwards, or

• established by reference to