Employee incentives consultations in the UK | Current status
Published on 6th Sep 2024
Employee share plans community awaits responses to pre-election consultations
In the UK, a response to a range of consultations that are relevant to employee share plans is awaited as the Autumn Budget approaches at the end of October 2024.
These include consultations on proposed improvements to tax-advantaged all-employee share schemes and the targeted reform of the taxation of Employee Ownership Trusts and Employee Benefit Trusts. There has been significant industry lobbying in support of improvements to the popular all-employee share plans, and it is important that the impact of any wider tax changes on such plans are carefully considered.
The consultation on the proposed new Private Intermittent Securities and Capital Exchange System (PISCES) market closed earlier this year. PISCES may provide a useful platform for private companies operating employee share plans involving transfers of existing shares.
The consultations were launched prior to the change in government in the UK, but it is hoped that updates will be provided on at least some of these at or around the Autumn Budget on 30 October.
Labour consults on carried interest
The new Labour government's call for evidence on the tax treatment of carried interest closed on 30 August, with Osborne Clarke's response highlighting the current regime's contribution to the UK economy.
A further announcement on the reform of carried interest will be made at the Autumn Budget, but we hope that any next step will involve further dialogue with stakeholders and a full consultation on draft legislation before any changes take effect.
Please get in touch with your usual Osborne Clarke contact or one of the experts below if you have any queries or would like to discuss further.
