The Chief Secretary to the Treasury (Danny Alexander)
At Budget 2013, the Government announced that they would provide £50 million annually from 2014-15 to support the employee-ownership sector.
The Government are today publishing a consultation document setting out proposals for two new tax reliefs to encourage, promote and support indirect employee-ownership structures. One of the reliefs is for capital gains tax on the sale of a controlling interest in a business into an indirect employee-ownership structure. The second is an exemption, up to a certain threshold, from income tax and employer and employee national insurance contributions on a bonus or equivalent payment paid to employees of an indirectly employee-owned structure.
The document outlines the Government’s intentions for these new reliefs and asks questions about the proposals on which the Government invite comments.
The Government intend to legislate for these tax reliefs in Finance Bill 2014.
The document is available at:
https://www.gov.uk/government/consultations/supporting-the-employee-ownership-sector.