Tories lose bid for share option concession
The government have flatly rejected a Tory demand for a share option concession to reduce the effective tax rate of 53% on unapproved share option schemes.
The government have flatly rejected a Tory demand for a share option concession to reduce the effective tax rate of 53% on unapproved share option schemes.
Shadow paymaster general Howard Flight claimed the higher rate was as a result of the increase in national insurance contributions, announced in the Budget, coupled with arrangements for the employee to pay both his own and his employer’s contribution on the value of the shares.
Speaking in Commons, during detailed debates of the Finance Bill, Flight said the previous effective charge was 49% payable on exercise of the option and pressed for an amendment, which would have delayed payment of tax and NICs until the shares were disposed of.
But paymaster general Dawn Primarolo defeated the proposal by 13 votes to six, and issued this harsh response: ‘Absolutely no, not under any circumstances.’
She said the amendment would indefinitely defer the tax due on receipt of shares received outside an approved scheme ‘perhaps paid as a form of salary sacrifice, which is a different way of paying them basically to avoid tax’.
And she added, the government had a wide range of approved schemes on offer.
The numbers you crunch tell a story. Your expertis...
22yEmbracing 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 ICAEW confirms new vice president, with senior heads appointed at KPMG and EY. Within the mid market, a flurry of end of year partner appointments...
View articleThe ICAEW confirms new vice president, with senior heads appointed at KPMG and EY. Within the mid market, a flurry of end of year partner appointments...
View articleThis follows an investigation into undisclosed personal loans and issues with an acquisition. Despite challenges, the company aims to achieve £1bn in ...
View articleThe ICAEW confirms new vice president, with senior heads appointed at KPMG and EY. Within the mid market, a flurry of end of year partner appointments...
View articleThere is optimism that the IPO market will rebound in the second half of 2024, driven by pent-up demand and potential improvements in economic conditi...
View articleThe ICAEW confirms new vice president, with senior heads appointed at KPMG and EY. Within the mid market, a flurry of end of year partner appointments...
View articleKPMG confirms reappointment of it's UK chair, while EY announces Janet Truncale as the next EY global chair and CEO Read More...
View articleThe ICAEW has announced the appointment of its forthcoming chief executive Read More...
View article