Overview

With the top rate of income tax now 50 per cent and capital gains tax (“CGT”) only 18 per cent, employees and their employer companies will be very keen to ensure that an income tax treatment applies to any gain realised by an employee on the sale of any shares he holds in his employer company.
Frequently, employees and employers believe that provided they make a joint election under section 431 of the Income Tax (Earnings and Pensions) Act 2003 (“ITEPA”) when the employee acquires his shares, then “everything will be rosy” and CGT treatment will be secured. It is very important though for employees and employers to understand that this will not always be the case.

Click “view briefing” to read more.