Brown launches share incentive plan

Brown launches share incentive plan

The government today launched an effort to kick-start business particpation in employee share ownership schemes.

Renaming all-employee share ownership plans, or AESOPs, the share incentive plan, chancellor Gordon Brown together with other senior figures, announced a roadshow to persuade more SMEs to open schemes.

Currently around 2,500 use the tax breaks through AESOPs, but Brown is keen to promote the scheme in an effort to increase productivity in British industry.

At the launch in London he received the backing of Digby Jones, director-general of the Confederation of British Industry, and qualified support from John Monks, general secretary of the TUC.

Under the share incentive plan, introduced in the Finance Act 2000, companies can give employees up to £3,000 worth of free shares and employees can buy up to £1,500 worth of shares from their pre-tax and national insurance salary. Shares kept in a plan for five years are not subject to income tax or national insurance.

The move comes on the back of anger and disappointment among share holders in Railtrack who face losses after the government put the rail network operator into administration.

Digby Jones said: ‘Employee share ownership can be an invaluable tool for giving employees a direct stake in the business,’ but warned buying shares was not like ‘putting money in the building society’.

The roadshow debuts at Peterborough on 31 October and travels to 12 cities around the country.

Links

Inland Revenue: all-employee share ownership plans

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

9m

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

1y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

8m

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

8m

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource