FREE share certificate template

Use this template (or something similar) when you issue shares in your company:

Share certificate template

Ensure that you record the shareholder's name, address and the number of shares issued. Number each certificate in the company's secretarial records.

Tax and shares

If you are planning on giving a director or employee free shares or allowing them to subscribe to shares in the company at less than market value there will potentially be an Income Tax charge under the Employment-related securities rules.

The tax charge will be the difference between the price that they pay and market value.

You might consider setting up a tax-advantaged share option scheme under the Enterprise Management Incentive or using a Company Share Option plan. Alternatively, you can consider using an employee benefit trust to hold shares and operate a flexible unapproved share scheme. Despite the fact that these schemes are not tax-advantaged, they can achieve a similar result if they are structured as part of a planned remuneration package.

Contact us if you would like further assistance or are unsure how the tax charge works in your case.

Useful guides on this topic

Employment-Related Securities & Share Schemes
What are the tax consequences when a company gives shares to an employee or director? What are employment-related securities? What is best: shares or share options? How do you set up a share scheme?

EMI: Enterprise Management Incentive Scheme
What is the Enterprise Management Incentive (EMI) scheme? What's the difference between EMI and an unapproved share scheme?

Shares, securities & options: Tax compliance
What are the filing requirements for share-based remuneration? What needs reporting by the 6 July deadline? What penalties are there for late filing?

Employee benefits and share schemes
Taxable and tax-exempt benefits in kind, cars and perks, share schemes and pensions.

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