May 03, 2018
Article
Tax-free sale
The employee shareholder status ending after a relatively short life seemed a disappointing step-back in the drive for wider employee ownership. However, the Government has kept in place an exit option to shareholders who are looking to place the ownership of the company into employee hands.The tax rules introduced for this type of trust permit:
- The deferral (and potential complete exemption) of capital gains generated on the transfer of qualifying shares to the trustees;
- An inheritance tax exemption where value is transferred to the trustees;
- Up to £3,600 income tax exemption in relation to certain employee bonus payments.