Consultation on providing tax reliefs to encourage employee ownership
The government has today launched a consultation on providing two new tax reliefs to encourage and support employee-owned companies.
The consultation is focused on indirect employee ownership forms: “This is where shares are held collectively on behalf of the employees – for instance in an employee benefit trust.”
The Nuttall Review of Employee Ownership in 2012 highlighted that employee-owned companies can provide numerous benefits to the economy, including faster job creation, resilience during the economic downturn and increased commitment from staff.
Following the review, the government announced at Budget 2013 that it will provide £50 million annually, from 2014-15, to support employee ownership models.
A final word
“The employee ownership sector has huge potential and the government wants to support it as much as possible. Employee ownership is of significant benefit to the wider economy, through increased growth and business success and this business model will also add greater diversity to our economy. We want to encourage greater use of employee ownership in UK businesses and want to ensure that we provide reliefs that are supportive and effective. Views are invited from both people inside and outside the employee ownership sector.” - Danny Alexander, Chief Secretary to the Treasury.
Want to know more?
Title: Supporting the Employee Ownership Sector, HM Treasury, 4 July 2013.
Availability: To download the consultation document visit www.gov.uk/government/consultations/supporting-the-employee-ownership-sector.
This stage of the consultation will run until 26 September 2013.
To respond to this consultation: