Should I take part in my company share scheme? My employer intends to introduce a new share incentive scheme for some staff and I will be eligible to participate. I have no experience of share schemes, but wondered whether or not, as a higher rate taxpayer, I would benefit financially from taking part, once income tax and national insurance contributions (NICs) have been paid? Stephen Chater, share plans director at Postlethwaite Solicitors, says there are many different types of employee share incentive scheme, but as yours is only open to some employees, it is discretionary, rather than an "all-employee" scheme. Your employer is offering the Enterprise Management Incentive (EMI), a scheme in which participants enjoy a low tax rate on their rewards. These plans are designed for small, independent UK companies and allow awards of shares to be made in the form of options. The employee is given the option to buy shares from a future date, at a price fixed at the outset. So long as that price is not less than the market value of the shares when the right is granted, any subsequent increase in the value of the shares is free from income tax and employee and employer national insurance contributions. If, after buying the shares, the employee decides to sell them, capital gains tax (CGT) will be due on the amount by which the sale proceeds exceed their purchase price. This would normally be chargeable at 18 per cent or 28 per cent. However, under the finance bill published on March 28, it is proposed that where shares acquired under EMI on or after April 6 2012 are sold after April 6 2013, CGT will be charged at only 10 per cent on the proceeds. This change came into effect because the government decided that the existing entrepreneurs" relief should be extended to shares acquired under EMI. The normal requirement to secure entrepreneurs" relief is that the taxpayer must have at least a 5 per cent shareholding. These proposals mean that share schemes set up as EMIs are an even more tax-efficient arrangement for employees to acquire shares. Employees in companies such as yours would be well-advised, therefore, to examine very carefully whether their scheme qualifies as an EMI scheme before considering possible alternatives.