More than four million UK employees participate in employee share plans. Most of these are employees of large, listed companies but a large and rapidly growing number of private sector employees are now becoming involved.

The reasons are obvious:

• Employees who have shares or options are more likely to support their employer's business objectives. Several recent studies have demonstrated strong gains in productivity and investment returns among private companies offering share incentives, compared to companies that don't

• The current range of HMRC (Inland Revenue) approved and registered share and share option plans are some of the most tax efficient incentive arrangements available worldwide

• Private company shares are as suitable as quoted shares, and in either case the end result can be a spendable, cash benefit for the employee

• The benefits in some cases are completely free of all taxes and NI contributions for the employee. In other cases, the maximum tax rate, with the use of the newly announced entrepreneur's concession, may be just 10 per cent

• Employers can also enjoy full corporation tax relief and large savings on employer NI contributions
  Several recent studies have demonstrated strong gains in productivity and investment returns among private companies offering share incentives, compared to companies that don't

• Employee share scheme can provide attractive opportunities for succession planning or exit strategies allowing retiring shareholders to realise value for their shares at low tax rates without introducing outside investment

How can these advantages be realised? For smaller companies, the secret is good advice. The use of company shares can involve complex legal and tax considerations. In a private company, a valuation of the shares will be needed for HMRC purposes and in some cases an employee trust will also be required.

We are pleased to announce a special offer, exclusive to New Business magazine. At the request of any New Business subscriber in England or Wales, we will meet with them at their offices, undertake a full technical assessment of the employee share or share option plan opportunities available, taking account of the company's objectives, capital and legal structure, and present a report entirely free of charge and obligation.

To request a free employee share plan assessment, please call RM2 on 0208 949 5522 or visit www.rm2.co.uk [1]

Geoffrey Bond is a partner at RM2