Ifs ProShare has welcomed HMRC’s changes to tax advantaged employee share schemes, calling them a ‘positive step’ and ‘strong start to reinvigorating’ the benefit.
As WSB reported on Thursday, certain rules governing employee share schemes will be changed in line with the government’s objective to simplify the tax system.
The government also revealed that company share option plans would be retained and not merged with the enterprise management incentive scheme.
HMRC’s proposed changes include:
• self-certification of share incentive plans, save as you earn and company share option plans the green light;
• online filling for returns;
• coordination of the rules on retirement for SIP, SAYE and CSOP;
• employers being allowed to provide scheme information electronically or through a secure website and an extension to the circumstances in which SAYE contributions can be made;
• and tax free exercise of SAYE and CSOP options, and tax free payments for SIP shares, on the cash takeover of a business.
Ifs ProShare head of employee share ownership John Collison said: “As the voice of the employee share ownership industry in the UK, we welcome any measures that simplify and bring consistency to existing share-ownership schemes.
“HMRC’s considered response is a positive step in recognising the benefits that employee share-ownership can bring to both business and employee.
“There is more to be done but these initial changes are a strong start to reinvigorating what continues to be a very successful means of encouraging saving, investing and improving company performance.”