ERSM20196 | Employment-related securities and Options: what are securities: phantom share plans

Some incentive schemes involve payment of future bonuses based on the increase in a tracker-share price over the life of the scheme. Such schemes are sometimes referred to as ‘phantom share plans’.

HMRC’s view is that phantom share plans are simply arrangements for the payment of cash bonuses measured in a certain way and cannot constitute securities or securities options. See also ERSM110020.