Filed under: Share Schemes
In our Budget review last month we mentioned one interesting announcement of a new tax relief, which had not been expanded upon in HMRC’s release notes. This is the opportunity for employee shareholders to dispose of shares without incurring capital gains tax (CGT). Further details have now been published and present an interesting new proposal for owner managed companies to consider.
These new proposals effectively require an employee to relinquish some of their employment rights and adopt a new ‘employee shareholder’ employment status. They are then able to acquire shares in their employing company through the adoption of this status. These shares will in turn attract new tax reliefs which will ensure that shares acquired up to a value of £2,000 will not attract tax and national insurance contributions when they are acquired, and sale proceeds received of up to £50,000 from eventually selling the shares will not be charged to capital gains tax. (more…)
April 4, 2013
Now as the tax year draws to a close, it is a good time to ensure that you have considered all the options when it comes to reducing your tax bill with tax planning. In this article we look at what you could be thinking about now to legitimately reduce your liabilities. (more…)
February 26, 2013
Setting up an EMI share scheme can be a very useful tax planning tool. Some important changes were announced to the EMI enterprise management scheme in last month’s Budget. Overall, the net result is a very positive one, as it significantly widens access to EMI options. These have been shown to be a worthwhile and tax efficient method of offering share options to employees. In addition to broadening access to the scheme itself, the individual limits to the amount of shares that can be held have also been increased. (more…)
April 13, 2012
Last week, the deputy Prime Minister Nick Clegg made some interesting comments concerning employee share schemes. This is something RJP has always supported because of their many tax benefits. Nick Clegg suggested more firms should operate what he described as the ‘John Lewis model’, whereby employees have a stake in the business and a direct share in profits. (more…)
January 30, 2012
Installment 2 of our focus on entrepreneurs’ relief. In essence, the entrepreneurs’ relief rules can appear deceptively simple; it can be dangerous to assume that all business assets qualify for the relief and this should be regularly checked. In addition, there are ways in which the relief can be maximised with forward planning. With the recent increase in the top rate of capital gains tax to 28%, it is a valuable relief and worth arranging your business affairs to ensure it is maximised.
Continue June 13, 2011
With Christmas almost upon us, you may be looking for some alternative gift ideas. Here at RJP, the Surrey based tax specialists, we’ve put together a Christmas wish list which see you through well into January and tax return time!
Continue December 9, 2010
Many of the clients Robert James Partnership deals with are family firms. In fact, it is fair to say they form part of the backbone of the UK economy, helping drive the creation of wealth and delivering benefits for society through both employment and support for local communities. How can EMI schemes benefit them to attract new talent into their companies? As always, our advice is very tax efficient…..
Continue October 4, 2010
Tax breaks designed to help small businesses retain key staff will now be available until 2018, the Government has announced.
Earlier this month, the Treasury confirmed that it had secured the ‘long-term future’ of Enterprise Management Incentives (EMI), after gaining state aid approval from the European Commission.
The eligibility criteria is also being extended to allow firms that carry out overseas activity to take advantage of the incentive scheme.
Continue August 26, 2009