The Institute, under the auspices of the CCAB-I, responded to the Department of Finance’s public consultation on the Key Employee Engagement Programme (KEEP), noting several uncertainties and obstacles deterring SMEs and their employees from participating in the scheme. Key areas identified where change would greatly improve the attractiveness and accessibility of the KEEP scheme include:
- Swift implementation of legislative changes introduced in Finance Act 2019.
- Accommodating an employer buyback of KEEP shares in order to create a market for the sale of the shares.
- Revenue guidance on valuation methodologies to support SME companies in adopting KEEP and other share awards.
- Abolition of the restriction linking the number of share options to an employee’s emoluments.
- Streamlining the definition for ‘holding company’ across entrepreneurial reliefs.
You can read the full submission here.