Employee Share Schemes 2nd Edition

The current regime for taxing employee shares can be traced back to FA 2003. The underlying principle is that value “gifted” to an employee is taxed as employment income, while organic growth in the value of securities benefits from capital treatment. That principle is worked out through a series of approved schemes, each with its own advantages and restrictions.

This book examines the different schemes and offers clear and practical guidance for employers considering the implementation of such schemes and for their professional advisers.

Contents (in brief)

• Background and first principles
• Taxation of employee securities
• Company considerations
• Implementing share schemes
• Statutory share schemes
• Employee share trusts

New for this edition

• FTT discussion of meaning of “securities” and subsequent amended HMRC guidance
• Court of Session consideration of ITEPA 2003 provisions re “by reason of employment”
• Court of Appeal consideration of older company reorganisation rules
• Introduction of health and social care levy
• Additional commentary and example re equity value
• Additional commentary and example, and Supreme Court and other case law rulings, re chargeable event exemption for “normal” transactions
• Court of Session ruling creating doubt over scope of statutory scheme for employment-related securities options
• Detailed new commentary and examples reflecting change from former entrepreneurs’ relief to business asset disposal relief
• New chapter added re foreign securities income
• Five-year time limit for claiming deduction for contributions to employee benefit trusts
• Report from Office of Tax Simplification commenting on CGT re growth shares
• New chapter on practicalities of implementing a share scheme
• Practical point re appointment of corporate trustees
• Importance of working time declaration for EMI schemes
• New chapter on employee-ownership trusts

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