Thomas Dalby, has more than 20 years’ experience as a chartered tax adviser and as an employed barrister. He has advised on the design and implementation of a wide variety of share option schemes.
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