Thumbs down for employee shareholder tax break

0

The Chancellor’s share-scheme reforms in Finance Bill 2013 draft clauses got mixed reviews from remuneration tax expert and part-time theatre critic Philip Fisher.

The PKF partner dismissed the plan for a new class of “employee shareholders” to receive a capital gains tax exemption on disposals of shares up to £50,000 as “the biggest joke of the year”.

On the other hand, a Budget 2012 proposal to extend entrepreneurs’ relief to enterprise management incentive (EMI) share options by removing the 5% minimium shareholding is “great news”, particularly since the recipients’ eligibility for the entrepreneurs’ 10% CGT rate on displosals will begin when the share options are first granted. The ER extension will apply to shares acquired on or after 6 April 2012 that are disposed of on or after 6 April 2013.

“Far be it for me to praise the government, but they got something right for once,” Fisher quipped.

Register and log in to AccountingWEB.co.uk to see further analysis of the following Finance Bill 2013 draft clauses:

Please Login or Register to read the full article

Replies

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.