The way in which employers must report share-based remuneration to HM Revenue & Customs is changing – almost everything will need to be filed online. In addition, HMRC will cease to approve certain share plan arrangements, putting the obligation on employers to “self-certify”. The changes affect all employers whose employees or directors hold shares or … Continue reading Changes to the administration of share-based remuneration
As part of today’s Autumn Statment, it has been announced that there will be increases in the limits applying to HMRC-approved Share Incentive Plans (“SIPs”) and Savings-related Share Option Schemes (“SAYE”). Under a SIP, and from April 2014, employees will be able to invest up to £1,800 per year (currently £1,500) from pre-tax salary in … Continue reading Today’s announced increases in SIP and SAYE limits
In this update, Partner Julien Monsenego and Senior Associate Rui Cabrita of Olswang’s Paris office look at the main tax measures in the French Government’s 2014 budget bill. To view the update, click here.
Following yesterday’s enactment of the Finance Act 2013, a number of significant changes have been made to the operation of tax-advantaged share plans; including EMI, CSOP, Sharesave (SAYE) and Share Incentive Plans (SIPs). There are a number of actions that companies should now consider taking. 1. Update plan rules and documentation Many changes will apply … Continue reading Changes to Approved Share Plans
Under the Government’s proposed initiative to introduce the “employee shareholder” status, employee shareholders will relinquish certain statutory employment rights in return for shares in their employer company on the basis that any future gains on those shares will be exempt from UK capital gains tax. With the legislation implementing the new status expected to come … Continue reading Employee shareholders – just another tax break for senior executives?
As widely reported this week, George Osborne has announced Government plans for new “owner-employee” employment contracts. While these are intended to help start-ups and other small businesses, it is possible that they may also become a feature of private equity financed companies. The proposal is that under these contracts employers will, in effect, be able to give employees between … Continue reading Government announcement – owner employee shares
Changes to the scope of Enterprise Management Incentives (“EMI”) options have been announced today which will expand the way in which employees can benefit from EMI options. Entrepreneurs’ relief is currently available to employees and directors who realise “qualifying gains” in respect of shares held in their employing company (or a member of its group). … Continue reading Entrepreneurs’ relief to apply to EMI shares
The Government has today taken steps to improve and reform the current EMI legislation. The measures are designed to help small and medium enterprises who carry on a qualifying trade recruit and retain high calibre employees. The government has said it will increase the value of tax-advantaged EMI options that can be held by an … Continue reading Enterprise Management Incentives Schemes (“EMIs”)
As widely predicted, the highest (“additional”) rate of income tax will be reduced from 50% to 45% from 6 April 2013. Given that the introduction of the additional rate has not delivered the additional tax revenues expected, it will be interesting to see if this 5% reduction is sufficient to prevent taxpayers from taking steps … Continue reading Reduction of 50% income tax rate and impact on employee share plans
In today’s budget, the Government has stated that it will consider and consult on the recommendations of the Office of Tax Simplification (“OTS”) relating to ways to simplify the tax legislation applying to tax advantaged share schemes in the UK. By way of background, on 6 March 2012, the OTS firstly recommended the introduction of … Continue reading Tax Simplification