No capital gains tax on employee share ownership for new emp

[TrueBlueTerrier]

No capital gains tax on employee share ownership for new employee-owners

http://news.bis.gov.uk/Press-Releases/N ... 68152.aspx" onclick="window.open(this.href);return false;

The Chancellor of the Exchequer, the Right Honourable George Osborne MP, has today announced plans for a new kind of employment contract called an owner-employee.
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 provide 16 weeks’ notice of a firm date of return from maternity leave, instead of the usual 8.

Employee-owner status will be optional for existing employees, but both established companies and new start-ups can choose to offer only this new type of contract for new hires. Companies recruiting employee-owners will continue to have the option of inserting more generous employment conditions into the employment contract if they want to.

Legislation to bring in the new employee-owner contract will come later this year so that companies can use the new type of contract from April 2013. The Government will consult on some details of the contract later this month.. Employee-owners receiving full capital gains tax relief on the shares awarded as part of their contract will still be eligible for existing employee share ownership schemes such as the Enterprise Management Incentive.

Notes to editors:

1. Employee-owners receiving full capital gains tax relief on the shares awarded as part of their contract will still be eligible for existing employee share ownership schemes such as the Enterprise Management Incentive.

2. The Government consultation on the employee-owner contract will include the details of restrictions on forfeiture provisions to ensure that if an employee-owner leaves or is dismissed, the company is not able simply to take the shares back but is able to buy them back at a reasonable price.

Non-media enquiries should be addressed to the Treasury Correspondence and Enquiry Unit on
020 7270 4558 or by e-mail to public.enquiries@hm-treasury.gov.uk

This Press Release and other Treasury publications are available on the HM Treasury website
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Media enquiries should be addressed to the Treasury Press Office on 020 7270 5238.

Contact Information

Name
BIS Press Office
Division
Department for Business, Innovation & Skills
Email
bispress.releases@bis.gsi.gov.uk

[fishtank]

So...a job offering £18,000 pa suddenly becomes a job offering £16,000+£2000 in "shares" with zero employment protection.....isn't Tory policy wonderful.
Could somebody give the TUC a shake before we all end up in the workhouse.

[clashcityrocker]

Yes but you would have the status of an "employee-owner".
You might be economically poorer but with enhanced social standing.......
Looks like a lose-win situation to me.

[fishtank]

You might be economically poorer but with enhanced social standing.......

Once a pleb always a pleb.
Know your place.

[clashcityrocker]

You might be economically poorer but with enhanced social standing.......

Once a pleb always a pleb.
Know your place.

Owned.

[Brainache]

What are you allowed to do with the shares when you are sacked ?

[pants123]

what a load of crap,,, if you accept such a employee share scheme, the employer can do what they want with you,,, being flexible,, what tosh, fire you at a whim, force you into untold work loads, with the threat of the sack if you don't do it.. if you accepted this bull, you can kiss all your rights down the bog... NO WAY HOSAY... kiss it.

[brunswick]

dangle the carrot and see how many take it,this is so like the selling off of council houses,and how many then became instant consevatives

[fishtank]

dangle the carrot and see how many take it,this is so like the selling off of council houses,and how many then became instant consevatives

It's not even a carrot it's a stick.
New entrants will have no choice but to accept these "contracts".
Existing employees will think they are safe but all it takes is a change of ownership,which can be done overnight "on paper" and even if you are protected by TUPE 12 months or so down the line you could face having your old contract torn up and the choice between accepting a new "ownership contract".....or walking to the job centre.
This isn't about choosing shares over employment rights it's simply about removing those rights.
No one will become an instant Conservative voter when they are on the dole and their share money has gone on paying the mortgage.

[NWpostie]

Do you get your employment rights back after you sold the shares for a pittance ? do you fvck ! this is a Victorian employer's charter for workers abuse,

Where's the protection for those with low IQ, learning difficulties, the weak willed who are easily manipulated, this idea is a road to hell..........

[TrueBlueTerrier]

Employee owner plans to boost growth set out

http://news.bis.gov.uk/Press-Releases/E ... 681df.aspx" onclick="window.open(this.href);return false;

Department for Business, Innovation and Skills

A consultation setting out plans for a new employment status called an ‘employee owner’ was published today, by Business Minister Jo Swinson. The move follows the Chancellor’s announcement on 8 October and will provide companies with a new option to increase the flexibility of how they hire people and help their companies grow.
Under the new employment status, employee owners will have a different set of employment rights and they will be given shares in the company of between £2,000 and £50,000. Any increase in value of these shares will not be subject to capital gains tax.

Employees taken on this way will have all of the rights associated with other employees except for:

· unfair dismissal rights (apart from automatically unfair reasons and where dismissal is based on discriminatory grounds),
· rights to redundancy pay,
· certain statutory rights to request training
· the statutory right to request flexible working
· employee owners will have to give more notice to their employer of their intention to return from maternity or adoption leave early.

Business Minister, Jo Swinson, said:

”We know that engaged employees are more productive and motivated. This scheme increases the options for business and brings greater flexibility to companies and employees in determining their employment relationship.

“By responding to the flexible needs of fast growing companies, it will help them take people on, providing a real incentive for employers and employees.”

It will be entirely voluntary for the employer to offer the new status – and for an individual to choose to accept it.

An employer will be able to choose the new status and still choose to offer more rights to their staff (e.g. the right to request flexible working or higher levels of contractual redundancy pay).

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 would benefit most from a flexible workforce.

The consultation sets out the proposal in detail and asks for views on how the government can implement it. This consultation is focused on both employment law and company law issues. The Treasury will be consulting on the tax matters separately.

The consultation will close on 8 November 2012.

Legislation to bring in the new employee owner contract will be introduced today via the Growth and Infrastructure Bill, with the aim of companies being able to offer the new type of contract from April 2013.

Notes to editors:

1. Anyone wanting to find out more about the proposals and submit their views should visit http://www.bis.gov.uk/Consultations/con ... s?cat=open" onclick="window.open(this.href);return false;

2. The Growth and Infrastructure Bill sets out a comprehensive series of reforms aimed at supporting businesses, developers, and first time buyers by slashing red tape that delays or discourages business investment, development or job creation.

3. The Government's economic policy objective is to achieve 'strong, sustainable and balanced growth that is more evenly shared across the country and between industries'. It set four ambitions in the ‘Plan for Growth’ (PDF 1.7MB), published at Budget 2011:

· To create the most competitive tax system in the G20
· To make the UK the best place in Europe to start, finance and grow a business
· To encourage investment and exports as a route to a more balanced economy
· To create a more educated workforce that is the most flexible in Europe

Work is underway across Government to achieve these ambitions, including progress on more than 250 measures as part of the Growth Review. Developing an Industrial Strategy gives new impetus to this work by providing businesses, investors and the public with more clarity about the long-term direction in which the Government wants the economy to travel.

4. BIS's online newsroom contains the latest press notices and speeches, as well as video and images for download. It also features an up to date list of BIS press office contacts. See http://www.bis.gov.uk/newsroom" onclick="window.open(this.href);return false; for more information.