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
AccountingWEB’s global editor has been with the site since 1999 and likes to spend his time studying accountants’ technology habits. When not nerding out, you can find him exploring obscure indie music and searching for the perfect organic sourdough loaf from his base in Brighton, UK.