HMRC dismisses save-as-you-earn concerns

HM Revenues and Customs has dismissed as 'scaremongering nonsense' claims that 80,000 employees will be caught by the new capital gains tax net, according to The Telegraph.

Under new rules, employees taking part in save-as-you-earn schemes will be liable for capital gains tax of 18% if their profit is more than £9,200. Previously, higher rate taxpayers were liable for 10%, and basic-rate taxpayers just 5%.

An estimated 270,000 employees take part in SAYE schemes, and employee share ownership lobbying group ifs ProShare has estimated 80,000 of these will be worse off under the new rules which start in April.

But HMRC told The Telegraph that the vast majority of SAYE savers will benefit from a provision that allows them to stagger disposal over more than one tax year and that they can also transfer the shares into an Isa.