Psion chairman lobbies for lower tax bill
David Potter, chairman of Psion, will continue to lobby government for lower tax charges on stock options, in spite of the Inland Revenue's step down on the matter last week.
The government announced last week it would introduce legislation to help companies that grant share options to employees as part of their remuneration but who experience highly volatile share prices.
The Revenue’s softening stance was greeted with a tepid response from PricewaterhouseCoopers, who are sympathetic to companies’ demands to further lower the National Insurance charges on share option gains.
It is understood that Potter, although pleased by the Revenue’s offering, wants to see the government lift the tax burden.
Psion can now transfer the tax bill over to employees, provided they agree, freeing up companies to invest their irregular cashflows into the company. Employees who accept share option as remuneration will receive new tax relief to offset any NI charges against the income tax.