I largely agree with
@Bluefin
While this isn't "risk free", there's a very low chance of losing any money here -and a good chance of making a notable gain.
Firstly, the share would have to lose 40% of its value, solely to lose the tax break
Next, the share would have to fall further, before the discount on acquisition price is lost. In my own experience, shares have been offered at between 10% - 25% discount to current price.
So, that's theoretically, a loss of 50% plus, just for you daughter to find herself in the same situation as if she were to take the bonus in cash, through payroll.
If the company typically pays dividends, the participant usually also gets the dividend, so that's a further small benefit, in most scenarios.
It's not practical to compare this opportunity with the daughter putting the bonus into an AVC, as the scheme is only for 3-years, and then she gets cash back, but it's probably a hell of a lot longer, until she hits retirement age.
Time will likely be an important factor for your daughter, as she might be saving to buy a house, or some other expensive future event, or may already have a big mortgage and be able to use the cash receipt in three years time, to help reduce this debt.
I've done these schemes regularly, in a number of companies, on and off, for the last 25 years, or thereabouts. With one exception, when a certain stock collapsed, I've always done well from these schemes. I'm currently in two, at different stages of a three years cycle, though my current employment.
Finally
@ClubMan , this obsession that some people have with wanting everyone to do a Money Makeover is rediculous, and in this case, is extremely unlikely to be necessary. I honestly think half of the time, it's only called for to give some people with too much time on their hands, a new topic for discussion, for a 4-5 day period.