US firm threatens to pull £250m investment

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. 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.

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