News Update
Budget boost for EMIs
Thu 13th March 2008
Alastair Darling announced that, from 6th April 2008, the upper limit on the value of shares that can be offered under an EMI scheme...
Research backs EMI effectiveness
Fri 29th February 2008
Nearly 80 per cent. of employers offering employee share options under the Enterprise Management Incentive (EMI) say that the scheme...
New CGT rules and share schemes
Fri 25th January 2008
Alastair Darling's new CGT rules offer some crumbs to small business owners but have little effect on employee share schemes.
£12m SAYE bonanza for HBOS staff
Fri 11th January 2008
HBOS has announced a payout of approximately £12m to its workforce of almost 14,000 staff following the maturity this week of its...
More companies to escape options audit
Wed 9th January 2008
Regulations coming into force in April will allow more companies to qualify as "small", and thus escape the requirement to expense...
No equity? I'm leaving!
Tue 8th January 2008
Leading City firm Close Brothers is suffering defections by senior staff as rumours grow of an imminent takeover bid. Five member...
Revised ABI Guidelines
Mon 10th December 2007
In recent years the ABI have chosen the month of December to issue revisions to their guidelines for executive remuneration.
Non-execs favour pay in options
Wed 28th November 2007
A big majority of non-executive directors at unlisted companies think they should receive shares or options as part of their pay,...
Practitioners lobby for end to tax trap
Thu 8th November 2007
The Employee Share Ownership Centre and Clifford Chance are leading calls for a change in the tax rules that apply to share schemes...
New CGT regime - implications for share schemes
Fri 19th October 2007
In the pre-Budget statement on October 9th 2007, the Chancellor announced that the previous capital gains tax regime would be abolished...
SAYE bonus rates increased
Sat 15th September 2007
The Treasury has raised the bonus rates on Save As You Earn (SAYE) share option schemes. This reflects a general rise in interest...
Share scheme returns go on-line
Fri 15th June 2007
We understand from HM REvenue & Customs that, within the next two years, they will require most employee share scheme returns...
Share scheme returns go on-line
Fri 15th June 2007
We understand from HM REvenue & Customs that, within the next two years, they will require most employee share scheme returns...
Budget boost for EMIs
Thu 13th March 2008
Alastair Darling announced that, from 6th April 2008, the upper limit on the value of shares that can be offered under an EMI scheme will increase from £100,000 to £120,000. This will allow more high level executives to take their rewards in a tax-efficient manner. It also indicates the government’s continuing support for this important and attractive incentive. More than 8,000 companies have now granted EMIs to a total of well over 100,000 employees.
Having given with one hand, Darling took away with the other. Companies with 250 employees or more will not be able to offer EMIs as from the date of Royal Assent to the Finance Bill 2008 (usually in July following the Budget). This restriction will affect very few companies, however, since those with gross assets in excess of £30 million are already excluded. Part time employees are counted on the basis of the number of hours they work as a proportion of a "standard" 35 hour working week.
Oddly, Darling also announced that companies engaged in shipbuilding or the production of coal or steel will be unable in future to offer EMI options. Given the gross asset test just mentioned, we think that very few if any companies will be affected by this restriction, especially as the shipbuilding restriction applies only to larger vessels. It looks as though this measure was introduced for technical reasons, to accord with European Directives.
It may have been plain sailing for employee share schemes, but disquiet continues to grow within sections of the Labour Party in respect of other of Darling’s measures, in particular the abolition of the 10 per cent. income tax band. We predict further trouble ahead for the embattled Chancellor...
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