BIM44015 - Specific deductions: employee share schemes: summary of tax and NICs treatment

This table summarises the key features of the different kinds of approved and unapproved schemes, and the tax and NICs treatment for employers and employees.

Scheme	SIP	EMI	CSOP	SAYE	Unapproved
Options or awards?	Awards	Options	Options	Options	Options or awards
Must a trust be used?	Yes	Not essential	Not essential	Not essential	Not essential
Income tax advantages for employees?	Yes	Yes	Yes	Yes	No
NICs advantages for employees and employers?	Yes	Yes	Yes	Yes	No
Statutory tax deductions for employers’ setting up costs?	Yes	No - general trade profits principles apply	Yes	Yes	No - general trade profits principles apply
Statutory deductions for the provision of shares?	Yes	Yes	Yes	Yes	Only if ‘qualifying shares’, - otherwise general trade profits principles apply (including the employee benefit trust rules)