EMPLOYEE SHARE OWNERSHIP
Budget provides further tax boost to share ownership
The UK government has unveiled a package of measures aimed at extending employee share ownership. In this week's Budget, Chancellor of the Exchequer Gordon Brown announced changes to the Enterprise Management Incentive, which is aimed at small, growing companies, as well as improvements to the new-style all-employee share ownership plan.
Enterprise Management Incentive
The government has decided to scrap the limit on the number of employees in each business that can participate in EMI schemes. Under the old rules only 15 key employees could benefit from these tax privileged share options.
The total value of shares that a business can issue will double from £1.5 million to £3 million.
All-employee share ownership plan
A number of detailed changes have been made to ease administration, including a new exemption from stamp duty when employees buy shares from an AESOP trust.
Capital gains tax taper relief
A tax break on employee share ownership — the so-called CGT taper relief of treatment of business assets — has been extended to staff of non-trading companies so long as they do not have a material interest of more than 10% in the company.
Want to know more?
Jump to the Inland Revenue's web site . . .
www.inlandrevenue.gov.uk/shareschemes/index.htm