US firm threatens to pull £250m investment
An American software firm has threatened to cancel a planned £250m investment in the UK unless the government moves to change rules governing National Insurance Contributions on stock options.
Software company Veritas claimed its decision to invest extra money in new European headquarters near Reading and a facility Watford depended upon the controversial taxing of stock options, the Financial Times has reported.
Dot.com companies rely heavily on the use of stock options to attract and retain skilled staff. But the perk currently attracts a 12.2% National Insurance tax charge on any increase in value, which new economy companies claim could cripple technology firms.
The Treasury, however, is refusing to reopen the debate claiming it has already made significant changes to the treatment of share options.