A couple of items relevant to employee shareholder status shares (ESSs) have appeared this week. First, HMRC reported in its latest Employment-Related Securities Bulletin that the Department for Business Innovation and Skills (BIS) has confirmed that already-issued shares – for example, those held by a shareholder or an employee benefit trust – can be used … Continue Reading
Although it is dated June 2014, BIS has just published the Government’s response to the consultation last November asking whether it would help the cause of employee ownership were the limit on the life of an employee benefit trust (currently 80 years) to be removed. There weren’t many responses (28) and no strong feeling/evidence either way, … Continue Reading
Today’s Budget was notable for the absence of announcements relating to employee share plans. So, despite the calls for it to be abolished, employee shareholder status lives to fight another day. This is perhaps not surprising given the enthusiasm George Osborne showed for the concept when it was first announced. As we have commented, ESS … Continue Reading
On 1 September 2013, employee shareholder status was introduced, bringing with it a favourable tax regime for UK employees willing to forfeit some of their employment rights in return for free shares in their employer. In January 2012 Deputy Prime Minister, Nick Clegg urged businesses to offer shares to their employees, saying it would improve … Continue Reading
