Growth Shares Explained (UK) | Animated Guide to a tax-efficient incentive for company growth

Описание: Unlock the advantages of growth shares with this engaging animated guide—perfect for UK startups, scale-ups, and private companies seeking a tax-efficient equity incentive.

What You’ll Discover:

What Are Growth Shares?
Growth shares are a special class of shares issued to key individuals—employees, directors, or advisors—that only gain value if the company exceeds a predetermined valuation hurdle (e.g., above current market value).

How Do They Work?
At issue, growth shares are nominally valued (often low or zero), making them accessible. When the company’s value surpasses the hurdle, holders share in the upside—providing a strong alignment of interests without diluting existing value below the threshold.

Tax Efficiency in the UK:
Rather than triggering income tax or National Insurance Contributions, gains on growth shares are typically subject to Capital Gains Tax (CGT) when sold—often a lower-rate tax benefit.

Benefits include:
Preserve Founder Value
Wide Eligibility
Flexible Structure

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‪@Postlethwaitecosolicitors‬ is a boutique law firm dedicated to helping businesses become employee owned. Established in 2003, we have guided over 200 companies through the transition to employee ownership, making us one of the UK’s most experienced advisers in this field.

We are ourselves 100% employee owned, giving us first-hand insight into the opportunities and challenges our clients face. Alongside our work on Employee Ownership Trusts (EOTs), we also advise on a wide range of employee share schemes, helping businesses of all sizes to design and implement arrangements that engage, reward, and retain their people.

Known for our practical, personal approach, we are trusted by owners, management teams, and employees across many sectors to provide clear, specialist advice at every stage of their ownership journey.

Visit: www.postlethwaiteco.com for more detail.