Around 5,700 Jet2 employees are set to share a £58 million payout as the airline’s first sharesave scheme, launched in August 2022, matures, with returns boosted by an 84% rise in share price. Employees who participated can either hold or sell their shares, with typical investors seeing gains of several thousand pounds depending on their monthly contributions. Following this success, Jet2 has introduced three more sharesave schemes for over 8,900 employees, alongside ongoing salary increases, profit-sharing, and bonus schemes to reward staff for their customer-focused performance.

Over 50 major UK companies, including Vodafone, Diageo, and Wickes, have urged Chancellor Rachel Reeves to make it easier for employees to buy shares in their employers by reducing the mandatory five-year holding period on Share Incentive Plans (SIPs) to two years. They argue that shorter holding periods would increase participation, giving workers a stake in their company while also helping firms attract and retain talent. The move aligns with the Government’s broader goal of encouraging ordinary people to invest and creating a more financially engaged workforce in the UK.

The Budget made contrasting changes for employee ownership, reducing the capital gains tax relief for shareholders selling to Employee Ownership Trusts (EOTs) from 100% to 50%, which could disadvantage those mid-sale and dampen enthusiasm for EOTs. Conversely, reforms to Enterprise Management Incentive (EMI) share option schemes were welcomed, with expanded eligibility, higher thresholds, longer option terms, and reduced administrative burdens, making EMI schemes more attractive for companies and employees. The inconsistency—cutting incentives for full employee ownership while enhancing tax advantages for EMI share options—has drawn criticism for sending mixed signals about the government’s support for employee ownership.

Almost 1,000 Wickes employees will share a £14.1 million windfall from the company’s employee share save scheme, benefiting as the stock more than doubled in value over three years. Staff invested between £10 and £500 a month at a discounted price, with average savers more than doubling their investment and maximum savers potentially making over £22,000 in profit. The scheme rewards employees for their commitment, with many planning to use the payout for home improvements, holidays, and long-term investment.

From 1 January 2026, Guernsey will tax share-based benefits at vesting or exercise rather than at grant, allowing a deferral of up to seven years and aligning taxation with when employees actually receive economic value. The taxable amount is still calculated based on the grant-date value, providing certainty for employees and employers, but accelerated taxation applies in cases of death, retirement, termination, or departure from Guernsey. This change makes Guernsey more competitive for attracting talent and innovative companies, particularly in tech and startups, and organizations should review existing share schemes in light of the updated Statement of Practice E43.

The UK Budget’s expansion of EMI share scheme eligibility will allow up to 8,250 additional businesses, including many scale-ups and founder-led companies, to offer tax-efficient employee share options, doubling the employee limit to 500 and increasing the assets cap to £120 million from April 2026. This move provides a powerful alternative to rising salaries, helping employers attract, retain, and engage talent by giving employees a stake in long-term business growth, which is linked to higher productivity and stronger retention. HR leaders must strategically design and communicate these schemes to ensure fairness, clarity, and maximum cultural and financial impact, making EMI a key tool in modern total reward strategies.

The annual deadline for employers and trustees to report all 2025 share scheme activity to Revenue is 31 March 2026, with different forms required depending on the type of share incentive and event, filed either online via ROS or by paper. Non-compliance can result in financial penalties, loss of tax-advantaged scheme approval, and Revenue intervention, with share schemes under increased scrutiny in recent years. Employers and trustees should now review and reconcile their 2025 activity with payroll records, ensure correct tax reporting, and consider whether their share schemes remain aligned with business objectives.

GMS Agency has transitioned to an employee ownership trust (EOT), with the EOT acquiring a majority stake while co-CEOs Sam Elder and Phil Craghill remain in leadership and as the largest individual shareholders. The move aims to align the company’s long-term vision with employee interests, safeguarding its culture, values, and independence while supporting sustainable international growth. Following strong revenue increases—18.75% in 2025 and over 220% since 2020—the agency seeks to ensure that those who contribute to its success directly share in its future.