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HM Treasury

Financial services

Employee Share Schemes

Employee share schemes play an important role, encouraging savings and asset ownership, allowing employees to benefit from the growth potential offered by shares, and encouraging employees to become greater stakeholders in their workplace.

In 2007-08 over 11,000 companies were using tax-advantaged employee share schemes, compared with just over 5,000 in 2000-01. The schemes provided employees with an estimated £880m in income tax relief and around £500m in National Insurance Contributions relief.

Research published by HMRC in 2008 found that employees were positive about the effects of Save As You Earn (SAYE) and the Share Incentive Plan (SIP) on employee relations (87% and 82% respectively) whilst employees reported increased the total amount they saved as a result of their participation in the schemes (79% for SAYE and 78% for SIP).

More information on share schemes is available from the HM Revenue & Customs website.

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