Posted on:Employee Shareholder, Employee Shareholder Shares, Equity, ESS, Incentive, Straight to the Point, U.K. Tax
Employees give up certain employment rights in return for fully paid-up shares in their employer company or its parent company worth at least £2,000 (valued on acquisition). The first £50,000 worth of shares (valued on acquisition) is exempt from capital gains tax on sale, regardless of how much is actually received by the employee. The only consideration which may be given for the shares is the entering into of the employee shareholder agreement. Although the subscription for the shares will generally give rise to income tax and NICs, there is an exemption on the first £2,000 worth of shares. Read more.