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.
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About John Stokdyk
John Stokdyk is the global editor of AccountingWEB UK and AccountingWEB.com.