Flowering Shares

Flowering shares can be a useful employee incentive that benefits both employees and employers. As experts in employment law and HR, our team at Neathouse Partners can ensure that you use this tax-efficient employee benefit in the right way.

We can take care of the entire process for you

Our experts will analyse eligibility and ensure that the best results are found for employers and employees alike

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What are Flowering Shares?

Flowering shares are a type of employee incentive that allows employees and directors to acquire equity in the company. A flowering share delivers value to the shareholder if the value of the company is above a set threshold.

This works by the company first creating a new class of shares. Below a certain point, these shares deliver minimal returns and have fewer rights. Employees that hold them only receive the shareholder voting rights and capital rights when a specific target is reached. This makes this type of share ideal for businesses that plan to grow to a set amount before exiting. They can be used as an incentive to encourage employee loyalty for the life of the company or until it reaches a certain point in its growth.

One of the advantages is that existing shareholders do not have the value of their shares immediately diluted. Additionally, flowering shares can be constructed so that the owners receive only a portion of the growth achieved, which also helps to protect early shareholders.

Flowering shares are tax-efficient and affordable, offering a useful employee incentive for many businesses.

How Can Neathouse Partners Help?

Our expert team can provide assistance with setting up a flowering shares scheme and ensuring your company benefits from using one. We can first provide advice on whether it is the right option for your business and what it will mean for you. As experts in business law and HR matters, we will discuss your business goals and ensure a flowering shares scheme will align with them.

We will help you to find the best employee share scheme for your business and provide advice on valuing the shares. Our team can also help with implementing and administering the share scheme, in addition to combining different types of shares to get more from your flowering shares.

Tax Implications Of Flowering Shares

When HMRC tax-advantaged share schemes like EMI schemes can’t be used, flowering shares are an efficient option.

When they are awarded, employees will be required to pay income tax based on the market value of the shares minus the price paid if they pay less than the market value.

Capital Gains Tax of 20% or 40% will also be due on any increase in value when they are sold. Employees may be able to benefit from the annual CGT exemption, and entrepreneur’s relief could also be applied to lower CGT to 10%.

Flowering shares can be combined with EMI options and other share types to maximise tax efficiency too.

We can help you with:

Assistance with setting up a flowering shares scheme Ensure the flowering shares scheme will align with your business goals

Advice on valuing the shares Help with implementing and administering the share scheme Combining different types of shares to get more from your flowering shares

Why Neathouse Partners?

Renowned expertise

Our team comprises of industry leaders and specialists dedicated to staying ahead of the curve in the latest Employment Law, Health & Safety and HR developments.

Services tailored to you

A fully bespoke 1-2-1 client-adviser model, offering a dedicated, fully qualified and experienced advisor to each client, who can handle all documentation and queries on their behalf.

Fixed fees

We base our prices on fixed monthly retainers, so you and your business receive an unlimited service without unexpected bills. This helps you to budget for your HR and Employment Law spend.

What our clients say about us

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“As a company, we have used Neathouse for a number of years. The service throughout has been exceptional. All matters are dealt with in a prompt and efficient manner. James and Gwyn are always on hand to deal with any issues and have provided detailed employment contracts, staff handbooks and advised on complex matters. I would highly recommend Neathouse as a trusted HR partner.”

Amanda Chalmers Executive Assistant Stretton Capital

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“A great service - fast, professional and friendly with accurate information on all things HR.
Full outsourced HR service is provided giving us peace of mind that we remain compliant”

Steve Griffith Business Manager St Gerard's School Trust

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“Having used the services of Neathouse Partners for many years, I’m confident to say that their employment law advice is commercial and focused on the answer rather than the journey! I have recommended the team to many other businesses and have never heard a bad word said.”

Scott Young Director - Corporate Services RedEye

“The experts on hand have been exceptional, their service is excellent and such value for money. If you are considering outsourcing your HR then I recommend you do.”

Courtney Nangle Charity Manager Sue Young Cancer Support in Leicestershire and Rutland

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FAQ

Frequently asked questions about Neathouse Partners.

What geographical areas does Neathouse Partners cover?

We offer services to all businesses and organisations located in England, Wales and Scotland.

Does Neathouse Partners cover my industry?

We provide HR and employment law services across a range of industries, including:

Health and social care
Retail
Hospitality and leisure
Charities
Construction
Engineering and manufacturing
Commercial cleaning
Healthcare

Visit our industries page for more information on the sectors we cover. If you can't find what you're looking for, get in touch and we'll let you know if we can cover your industry.

What makes Neathouse Partners different from other service providers?

We pride ourselves on our professional yet personal service, and build close working relationships with our clients so that we remain accountable for the advice we give. We provide personalised solutions to our clients, tailoring them to their unique business challenges while making them compliant with UK employment law and HR best practices.

As a business owner, you need to focus on what’s really important to your business, with the peace of mind that we're looking after your HR requirements. We draft, edit and prepare your documents on your behalf, so that you can focus on your business knowing you’re fully compliant.

We're a small collective of specialist qualified employment lawyers and HR experts, delivering an outcome-focused end-to-end service that helps you to operate at your best and comply with both UK law and HR best practices.

You’ll be given your own personal HR Consultant or Employment Lawyer, who'll take their time to really get to know you, your business, and how you operate. This enables us to support what’s right for your business, whenever you need it. Our unique offering of lawyer-led employment law services, combined with expert HR advice, means that we can provide a seamless and consistent service to our clients. Unlike other companies offering HR solutions, our services always come at a fixed cost, enabling you to easily budget for your HR requirements, with no financial surprises later down the line. There’s no usage limits and no hidden extras. You can rest assured that all of your HR and employment law requirements are covered.

Which sizes of companies does Neathouse Partners help?

Neathouse Partners caters to a diverse clientele, accommodating the needs of everyone from small businesses with a single employee to large-scale organisations with 7,000 or more employees.

Have inquiries?

Contact our experts

Contact us, and our team will get back to you within 24 hours. We value your questions and are committed to getting them answered quickly.

We offer unlimited HR and employment law advice, covering all matters throughout the employee lifecycle.

Neathouse Partners provide redundancy advice for employers. Our solution-driven, personal service ensures that employers have access to a named and dedicated HR or employment lawyer to help them expertly navigate HR best practice and employment law, regardless of how complex the issue may seem.

Plan, manage, and monitor health and safety in the pre-construction and construction stages of your project.

Support your staff when they are struggling.

Lawyers at our firm can draft, prepare, review, evaluate and resolve numerous commercial agreements on your behalf.

We provide specialised HR and Health & Safety services for the health and social care.

We offer unlimited HR and employment law advice, covering all matters throughout the employee lifecycle.

Neathouse Partners provide redundancy advice for employers. Our solution-driven, personal service ensures that employers have access to a named and dedicated HR or employment lawyer to help them expertly navigate HR best practice and employment law, regardless of how complex the issue may seem.

Plan, manage, and monitor health and safety in the pre-construction and construction stages of your project.

Support your staff when they are struggling.

Lawyers at our firm can draft, prepare, review, evaluate and resolve numerous commercial agreements on your behalf.

We provide specialised HR and Health & Safety services for the health and social care.

Flowering Shares

Experience the undeniable success of our services – as reflected in our exceptional ratings