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Tories' 'rights for shares' scheme blasted by employment lawyers

Speaking as a tax adviser, there are numerous flaws. Take this one: join a start-up or a small company (where shares aren't worth much usually). Awarded £50k of shares. That's a £10k / £20k / £22.5k income tax liability, depending on your marginal rate of tax (ignoring NIC), payable in cash, in exchange for a piece of paper that also means you give up the employment rights mentioned above. Ignoring share valuation issues. Ignoring the fact that employers can choose to make these type of employment / share arrangements mandatory. Yes, I can see this is going to be popular.

10-Oct-2012

2:49 pm