OTS recommends share schemes overhaul
The Office of Tax Simplification (OTS) has published a new report calling for a complete overhaul of 'unapproved' employee share schemes.
Following a year-long review, the OTS has come up with a range of simplifications to encourage greater employee ownership and ways to reform tax complexities around share schemes.
John Whiting, tax director for the OTS said the current share schemes legislation was a “tangle of complexity”, created costs and pitfalls for companies and employees, and significant burdens for HMRC.
PKF’s Philip Fisher, who was on the OTS share schemes consultative committee, said the main recommendations would completely re-engineer the way in which employees are taxed on shares and provide massive protections.