Amid spiralling living costs, and significant differences between the tax rates on capital gains and income, company share schemes may offer an appealing option both for you and your employees.
The measures taken by Chancellor Rishi Sunak to increase personal taxes, such as the increase in National Insurance now in effect, along with freezing allowances and tax bands, will inevitably leave many individuals reviewing their tax affairs to see if they can soften the financial blow to their income.
Many share schemes are effectively HMRC-approved and can offer tax advantages to employees and key staff, with preferential tax rates potentially applying when the shares are eventually sold. Therefore, rather than receiving a bonus that could be subject to tax at an effective rate of 48.25%, an employee could acquire shares in the business and sell these subject to a tax rate as low as 10% in the future.
Find out more
If you’re looking to align your employee’s interest with the companies, and/or seeking to reward, incentivise and retain key staff, a share scheme could provide the ideal solution. Find out more by contacting our Tax team on 01788 539000 or 0116 261 0061, or email [email protected].