This is due to provisions in this year’s Finance Act which is also likely to see income tax and national insurance contributions apply raising the tax bill to 54% as opposed to the current 10% capital gains tax.
Tax specialists from PricewaterhouseCoopers warn that the rules dealing with share options have been completely rewritten under the new Act, turning employee share acquisitions into a ‘fiscal minefield’.
Alex Henderson from PwC said there was a ’14-day time limit from when you get the shares for choosing how you’re going to be taxed to avoid more tax later’.
He explained: ‘Employees and employers would normally be hit with this income tax/NIC charge when the share rights are changed or the shares sold. But they have 14 days to elect – jointly – to be taxed on the value when the shares are given. Anyone who has acquired such shares since 16 April has until 15 September to make the election.’
Crowe Clark Whitehill , the top 20 accountancy firm, has announced the promotion of Chris Mould to partner
The latest opinions from Accountancy Age on Making Tax Digital, and outline plans to evolve the UK's corporate governance regime
Five million taxpayers are ow using digital personal tax accounts (PTA) as part of the making tax digital strategy, HMRC said
UK-based non-doms have paid ten times more tax than the average taxpayer, raising concerns over the Brexit impact on non-dom contributions and therefore, the economy