A LATE amendment to Chancellor George Osborne’s Autumn Statement has given companies a major new incentive to widen employee share ownership.
David Butterworth (pictured), of Huddersfield accountancy firm Wheawill & Sudworth, said that EMI share option schemes will now be a lot more attractive to help provide an incentive to key employees.
Said Mr Butterworth: “To secure maximum tax breaks on these arrangements, employees previously had to own their shares for at least 12 months.
“However, many schemes did not cater for this and this watered down the effectiveness of them.”
For shares acquired on or after April 6, 2012, and sold on or after April 6, 2013, the 12-month qualifying period will apply from the date that the option was granted.
Mr Butterworth said: “This means that actual shares held for under a year can now qualify for a capital gains tax rate of only 10%.
“In light of this positive step, I expect a lot more local companies to look at implementing such schemes to help fire up their key people.”