UK Employee Incentives Update: September 2025
Published on 18th September 2025
In this edition we look at the increasing popularity of employee ownership trusts, the latest on the new PISCES platform and developments in Belgium
Employee Ownership Trusts continue to soar as shareholders seek to maximise tax benefits
From tax benefits to improved employee engagement, transitioning to an Employee Ownership Trust (EOT) is increasingly appealing to business owners. Recent increases to the Capital Gains Tax (CGT) rate are likely to mean that the sale of businesses to an EOT becomes an even more popular option for shareholders looking at exit strategies.
Our next webinar titled 'Employee Ownership Trusts: Tax‑Smart Exits, Culture Gains — Are They Right for Your Business?' will take place on Tuesday 21 October at 10:00.
Join us for an hour's interactive webinar where our team will share their experiences in assisting a large number of companies become EOT-owned as well as the sale of EOT-controlled companies. This session will be of interest to business owners looking to transition their company to an EOT structure as well as investors and companies interested in acquiring EOT-controlled businesses.
PISCES | Updated HMRC guidance and draft legislation
HMRC has been consulting on draft legislation to allow the terms of existing enterprise management incentive and company share option plan options to be amended to include a right of exercise where resulting shares will be immediately sold on the new PISCES platform, without losing their tax-advantaged status.
Mandatory payrolling of benefits in kind | Guidance awaited
The government announced earlier this year that the introduction of mandatory payrolling of benefits in kind would be delayed until 6 April 2027.
HMRC indicated that draft legislation, guidance and technical information would be provided "from autumn 2025 onwards", so it is possible that HMRC may provide an update at or around the Autumn Budget on 26 November.
The new reporting system will be mandatory for most benefits in kind and expenses from April 2027. Employers will also have the option to voluntarily payroll employment-related loans and accommodation from April 2027. Software providers and employers will welcome further information to enable them to prepare for this significant change.
International | What impact could Belgium's new capital gains tax have on stock option plans?
The Belgian federal government plans to introduce a new capital gains tax on financial assets from 1 January 2026. Our Belgian team has published an Insight which explores the proposed new regime, its impact on "qualifying" employee stock options and the practical implications for participants.
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