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...
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...
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...
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)....
In view of the ongoing Coronavirus crisis, please see below some practical tips and guidance for trustees of businesses owned by employee ownership trusts (EOT). Trustee duties With the expected economic chaos arising from the Coronavirus crisis it is important to recap the duties and responsibilities of...
RM2 is open for business, although we are following the guidance issued by Public Health England, which can be found using the following link: https://www.gov.uk/government/collections/coronavi...
Entrepreneurs Relief (“ER”) and Enterprise Management Incentives Clearly, the Treasury have finally had enough of the fact that ER primarily benefited a small number of very affluent taxpayers and, according to the government, has done little to generate additional entrepreneurial activity. Accordingly, they have slashed the...
