Definitions for "Employee share ownership plan"
A trust established by a company for the allocation of shares to employees.
A trust which is established to acquire shares in a (ESOP) company for subsequent allocation to employees over a number of years.
A method of providing the employees of a company with shares in the company. The ESOP buys shares in its sponsoring company, usually with assistance from the company concerned. The shares are ultimately made available to the employees, usually directors, who satisfy certain performance targets. Enterprise Investment Scheme The Enterprise Investment Scheme (EIS) was introduced on 1 January 1994 with the aim of encouraging new equity investment in trading companies by providing generous tax incentives to investors other than those already connected with the company. An investor may qualify for both income tax relief and capital gains tax relief in respect of an EIS investment. The capital gains tax relief in particular can be extremely valuable, as it can mean that the large gain that may potentially be made by investors in high tech companies when they realise their investment, may be exempt from taxation.