Employee Shareholders – no tax benefits for agreements entered into on or after 1 December 2016


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Posted on 23 Nov 2016

The Chancellor has announced in his Autumn Statement that the income tax and capital gains tax reliefs associated with employee shareholder status will be abolished for employee shareholder shares acquired under an employee shareholder agreement entered into on or after 1 December 2016. 

Due to the requirement that 7 days must pass between an employee receiving independent advice on an offer and becoming an employee shareholder, this means that any individual who received advice before 23 November 2016 has the opportunity to finalise the outstanding arrangement before 1 December. The deadline is extended to 2 December in cases where advice was received on 23 November prior to 1.30pm.

The tax advantages will continue to apply for arrangements entered into before 1 December 2016.

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