The Office for Tax Simplification’s (OTS) most recent report doesn’t just look at tax simplification, but includes policy recommendations relating to capital gains tax (CGT) - an interesting extension of the Treasury’s usual instructions to the OTS. Some of the recommendations, if implemented, could create...
Share plan administration is never easy, even if you are a small company with only a couple of people participating in your plan. This article looks at some of the common problems facing companies who are looking to independently manage their schemes. Who's in charge around...
There is a strong argument for issuing shares to employees or granting them share options during the current Covid-19 pandemic, as the value of shares may be relatively low. However, there are practical difficulties regarding share valuation to consider.For tax-advantaged share plans, the valuation methodology...
The RM2 Partnership Limited is an employee owned consultancy specialising in the design, implementation and administration of all types of employee share plan arrangements. Our clients include private companies and those listed on AIM or similar markets. We have a vacancy for a Share Plans Assistant...
It goes without saying that 2020 will be a memorable year. A country in lockdown resulting in businesses feeling the effects for some time to come. The UK has entered into recession for the first time in 11 years. There is no doubt that there...
The government has recognised the Share Incentive Plan (SIP) is an excellent starting point for employee ownership, with its almost unbelievable tax efficiency, huge flexibility and straightforward implementation. Key benefits of a SIP In summary, here are the key benefits of a SIP for a company looking...
There has been recent speculation in the press regarding possible changes to capital gains tax rates (CGT), which are far lower when compared with income tax rates, and the possible withdrawal of entrepreneurs’ relief (ER), which taxes qualifying gains to a CGT rate of 10%...
The Upper Tribunal (“UT”) has allowed HM Revenue & Customs (“HMRC”) to appeal against the decision of the First-tier Tribunal (“FTT”) Vermilion Holdings Ltd v HMRC [2019] UKFTT 230 (TC) (8 April 2019) that an option was not granted to a director by reason of...
To be a qualifying Enterprise Management Incentive (EMI) option on exercise there are certain working time requirements that an EMI option holder must meet throughout and furloughing an employee technically constitutes a ‘disqualifying event’ such that from the moment the EMI option holder ceases to...
Companies that operate Share Incentive Plans (SIP) for employees will already know about the excellent tax benefits offered by this type of all employee share plan. Ultimately, a SIP can deliver a zero tax rate for participants, making it the most tax efficient share plan...
What makes a successful employee share plan? These are testing times for all of us, so perhaps it’s a good time to share some positivity - the story of one of our clients whose employee share plan arrangements achieved a number of successful outcomes. A private company...
This article is not an attempt to increase levels of “collective hysteria” which are certainly not welcome at the current time, but the blog is intended to be merely noteworthy. It is undeniable that due to the current coronavirus pandemic, the Government has acted in ways...
Amidst ongoing anxiety unleashed by the coronavirus pandemic, concerns about the impact on the economy are increasingly driving government’s response. Is it time to start thinking about alternative business measures to help stabilise and improve the economy, and could employee ownership be part of this? The...
RM2 – COVID-19 Update It’s clear to all of us by now that these are unprecedented times. They are confusing and are shaping some businesses in a way that has never been seen before. At RM2 we are working from home and the office...
Finally, HM Revenue & Customs have decided to try to turn Entrepreneurs’ relief into a “bad” relief. Finance Bill 2020 potentially changes the name of the relief from "entrepreneurs' relief" to "business asset disposal relief" with effect from the tax year 2020-21 (i.e. 5 April 2020)....
