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ARTICLE · 25 SEPTEMBER 2013

Indirect Employee Ownership

Fieldfisher
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Following the findings of the Nuttall Review and in order to support this sector, the Government has decided to introduce two tax reliefs to "encourage, promote and support indirect employee ownership".

United KingdomTax
Graeme Nuttall
Graeme Nuttall
Jennifer Martin
Jennifer Martin

Following the findings of the Nuttall Review and in order to support this sector, the Government has decided to introduce two tax reliefs to encourage, promote and support indirect employee ownership" (HM Treasury, 4 July 2013). Graeme Nuttall and Jennifer Martin explain more.

Introduction

Successive UK Governments have used tax reliefs to encourage the direct ownership of shares by employees. An HM Treasury consultation launched on 4 July 2013 (Employee Ownership Day) outlines the Government's support for an alternative form of employee ownership, namely, the collective (or indirect) ownership of shares on behalf of employees.

The consultation document, "Supporting the employee ownership sector", confirms the introduction of two tax reliefs to support indirect employee ownership. These reliefs will increase awareness of this business model and will encourage its take-up. The reliefs, which are expected to apply from April 2014, are:

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