Brown launches share incentive plan
The government today launched an effort to kick-start business particpation in employee share ownership schemes.
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
The numbers you crunch tell a story. Your expertis...
23yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn 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 resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe upcoming tax changes in 2024 will significantly impact businesses and individuals in the UK. Accountants play a crucial role in helping clients na...
View articleUHY Hacker Young and audit engagement partner Martin Jones face fines of more than £300,00 following Laura Ashley audit breaches. Read More...
View articleIt is hard to argue that the Taxes Management Act 1970 (TMA), wouldn’t benefit from some substantial updating. It came into force back in the mists of...
View articleMorton became Tax Director of the Office of Tax Simplification, an independent office of HM Treasury, in 2017 Read More...
View articleThe Low Income Tax Reform Group believes the government should have included tax initiatives in its plans for disabled people and employment Read More...
View articleThe Upper Tribunal has rejected an appeal from HMRC in a case relating to the taxation of termination payments made to football player employees of To...
View articleThe revised guidance sets out the circumstances under which trustees need to disclose the identities of beneficiaries to HMRC Read More...
View articleAlthough the concept of a £1,000 tax-free allowance sounds very simple, there are a number of complexities of which taxpayers and advisers need to be ...
View article