An Inland Revenue-approved employee share ownership scheme that was established in the UK in 2000. Under the plan, employers established a trust which purchased shares and distributed them to all qualifying employees. ‘Free’ shares were simply allocated to employees, though it was permissible to link shares to employee performance. Under another arrangement, employees could purchase a ‘matching’ or ‘partnership’ share for each free share that is allocated. To encourage take-up of the scheme, there were various tax benefits for both employers and employees. For example, employees who kept their shares in a plan for five years paid no income tax or National Insurance Contributions on those shares. In 2001, the All-Employee Share Plan was renamed the Share Incentive Plan. [See Save-As-You-Earn share option scheme.]
Subjects: Human Resource Management.