Two new consultations announced
The Chancellor has confirmed consultations with respect to two of the more radical recommendations from the review by the Office of Tax Simplification of unapproved share schemes.The recommendations
The Chancellor has confirmed consultations with respect to two of the more radical recommendations from the review by the Office of Tax Simplification of unapproved share schemes.
The recommendations were:
1. Introduction of the concept of a "marketable security", whereby employment related securities will only be taxable if they are marketable securities (in other words they can be sold for money or money's value for a price equal to the unrestricted market value of the security).
2. Introduction of a new safe harbour "employee shareholding vehicle", similar to an employee benefit trust. This would enjoy specific tax breaks, and be more straightforward to implement than EBTs.
If the results of the consultations into these two recommendations lead to their implementation (in one form or another), then they could potentially prove to be extremely useful in simplifying the implementation and administration of employee share ownership in private companies.
The recommendations were:
1. Introduction of the concept of a "marketable security", whereby employment related securities will only be taxable if they are marketable securities (in other words they can be sold for money or money's value for a price equal to the unrestricted market value of the security).
2. Introduction of a new safe harbour "employee shareholding vehicle", similar to an employee benefit trust. This would enjoy specific tax breaks, and be more straightforward to implement than EBTs.
If the results of the consultations into these two recommendations lead to their implementation (in one form or another), then they could potentially prove to be extremely useful in simplifying the implementation and administration of employee share ownership in private companies.