Employee share schemes: simplification of the rules

Following recommendations from the Office of Tax Simplification (OTS), a number of changes are being made to the rules for employment-related securities (ERS) and ERS options. Broadly, the changes will: - for non-tax advantaged schemes, clarify the tax treatment for internationally mobile employees (IMEs) of certain ERS and ERS options; 

- reinstate rules for share incentive plans (SIPs) previously repealed, to enforce the principle that shares with preferential rights cannot be issued to selected employees only; and

- permit late registration of tax-advantaged share schemes where the taxpayer had a reasonable excuse. The changes will generally take effect from Royal Assent to Finance Bill 2016. An amendment allowing a company controlled by an employee ownership trust to operate an enterprise management incentives (EMI) scheme will be backdated to 1 October 2014. A further change will provide that, following a company takeover, minority shareholders holding qualifying share options in an EMI will have the right for their share options to be acquired by the offeror without losing their tax advantage. This change will be backdated to 17 July 2013. (TIIN 9 December 2015)

Added By: Luke Noble on 21st Mar 2016 - 16:56
Number of Views: 1134
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