Business warned over 50% tax strategies
Plans to avoid 50% tax rate for staff could backfire on business
Trying to duck the 50% tax rate could hit businesses later on in the
business cycle.
Accelerating cash payments before the new tax comes into effect could prove
problematic if staff then underperform or leave unexpectedly.
Restructuring share awards was one alternative, as they can be forfeited in
certain circumstances. Other are deferring bonuses altogether in the hope that
the tax rate will fall, reported the
FT.
Further reading:
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