On Tuesday, 21 July 2020, the Government announced further good news for companies operating enterprise management incentive (EMI) share option schemes that will allow them to continue to grant new options to individuals who: have been furloughed under the Coronavirus Job Retention Scheme (CJRS), or have taken unpaid leave, or have had their working hours … Continue Reading
Employee retention is a high priority for businesses grappling with the profound impact of the coronavirus disease 2019 (COVID-19). Employee share schemes remain a versatile and valuable way to retain important employees. However, many may not have considered the unexpectedly adverse tax consequences that some of the UK government’s business support measures (including, for example, … Continue Reading
Since 6 April 2018 companies have been unable to grant new EMI options, because the existing EU state aid approval expired without fresh approval having been received. So there has been much excitement today at the news that the EU Commission has now given state aid approval, and companies can now grant new EMI options. … Continue Reading
Participants in Save as Your Earn (SAYE) schemes are currently able to take a “payment holiday” of up to six months. This helps participants keep their SAYE options by allowing them to take a break from making monthly payments, for example while they are on maternity leave. In the Autumn Budget the government announced the … Continue Reading
In Société Orange (decision QPC 28-4-2017 n°2017-627/628), the French Constitutional Council has ruled that the refusal of the tax authorities to reimburse an employer company’s compulsory social security contributions, made in respect of the grant of conditional bonus (or free) shares where the conditions are not subsequently met (such that the shares never vest), was … Continue Reading
Just a quick reminder that the deadline for making annual returns for UK share schemes relating to the 2015/2016 tax year is 6 July 2016. For tax-advantaged share schemes: share incentive plans (otherwise known as SIPs); company share option plans (CSOPs); savings-related share option schemes (SAYE/Sharesave); and Enterprise Management Incentives (EMI), if a new scheme … Continue Reading
The EU Market Abuse Regulation (MAR), which contains new rules about dealing in shares by directors and “persons discharging managerial responsibilities” (PDMRs), will come into force on 3 July 2016. Unlike the current rules, which are different for companies on the full list and those on AIM, the MAR will apply to all quoted companies. … Continue Reading
On 1 July 2015 some important changes were made to the taxation of employee share schemes in Australia which will make employee option schemes more attractive for employees, particularly where the company qualifies as an eligible start-up. For all employee option schemes there is the possibility of deferring the taxing point until exercise of the … Continue Reading
In several posts last year, we charted the development of the new HMRC rules for the online registering, self-certifying and making of annual returns for share plans, and indeed all arrangements under which employees receive shares. Now the dust has settled, the teething troubles have been ironed out and the templates for the new “end-of-year” returns … Continue Reading
If executives of a German company are granted equity interests in the company, the tax treatment of payments resulting from such equity interests can prove controversial if the tax authorities launch a tax audit. The payments could either be treated as employment income or as a capital gain. In the first case, the payments will … Continue Reading
As the dust settles on the eagerly awaited HMRC v Martin decision (see our previous blog post), thoughts are inevitably turning to how that decision impacts on an employer’s approach to clawback payments, particularly in the world of variable remuneration. Whilst the judge in the Martin decision was clear that his conclusion turned on the … Continue Reading
Since our last post on this topic, extra little nuggets have been emerging about how the new regime will work in practice. Here are some of the common traps for the unwary: 1. Paper filing is a thing of the past – it’s all online now No, annual returns for the 2013/2014 tax year for … Continue Reading
The parts of the UK Finance Bill relating to share plans came into force yesterday, finally implementing many of the recommendations of the Office of Tax Simplification in this area. The main thrust of the new regime is online registration and self-certification of plans and filing of annual returns, of which more details are given in … Continue Reading
With the 6 April start date for the new self-certification regime for HMRC-approved share plans fast approaching, HMRC have published some helpful amendments to the proposed legislation but have also published new provisions that require further clarification. Questions remain on how both existing and new plans will be affected. For more details, read our alert.… Continue Reading
The draft Finance Bill for 2014 was published yesterday. Of the 673 pages of draft legislation and explanatory notes, more than 120 pages dealt with employee shares schemes, employee ownership and related issues. To prove that tax doesn’t have to be taxing, we have done the hard work for you and distilled down your “need-to-knows”.… Continue Reading
There wasn’t a great deal in the Chancellor George Osborne’s Autumn Statement to do with employee share schemes that we hadn’t heard about already. However, there was one unexpected gift – an increase in the limits on the contributions that can be made to SAYE (Sharesave) schemes and share incentive plans (SIPs). That said, for … Continue Reading
