1. Private Clients
1.1. Employee-owners
The Chancellor of the Exchequer has announced plans for a new
kind of employment contract called an owner-employee contract.
New employee-owners will exchange some of their UK employment
rights for rights of ownership in the form of shares in the
business they work for, any gains on which will be exempt from
capital gains tax.
Companies of any size will be able to use this new kind of
contract, but it is principally intended for fast growing small and
medium sized companies that want to create a flexible
workforce.
Under the new type of contract, employees will be given between
£2,000 and £50,000 of shares that are exempt from
capital gains tax. In exchange, they will give up their UK rights
on unfair dismissal, redundancy, and the right to request flexible
working and time off for training, and will be required to provide
16 weeks' notice of a firm date of return from maternity leave,
instead of the usual 8.
