Government considers tax and NI cuts to bolster shares scheme

Published:  10 December, 2012

The government will consider waiving income tax and national insurance contributions on the first £2000 in value of shares awarded to employees in return for their giving up some of their employment rights under the new "employee owner" proposals.

The move was announced in the government's autumn statement and could make the shares-for-rights plan more attractive for employees. 'Employee owner' status was announced in October as a third form of employment status, alongside 'employee' and 'worker', taking effect as a new form of equity-linked employment contract.

In exchange for giving up certain employment rights, employees will become owners of a stake in the business they work for by being given shares in the employer company worth between £2000 and £50,000.

The government had previously announced that any profit on those shares will be exempt from capital gains tax when the shares are sold.

Sign Up

For the Builders' Merchants News enewsletter.

In the spotlight

We have vacancies all over the UK for those who work within the Building Supplies sector.

Events Diary