UK Employee Incentives Update | September 2023
Published on 19th Sep 2023
In this edition, we cover developments in UK tax-advantaged all-employee share plans, the government's consultation on targeted reform of the employee ownership trust regime and a recent employment law appeal case involving a share incentive scheme.
Our Dutch team also considers the tax rules on non-fungible tokens (including the wage tax implications).
All-employee share plans | Call for evidence
The government's call for evidence on UK tax-advantaged all-employee plans closed on 25 August 2023. The information gathered over the summer will be used to consider opportunities to improve the Save as You Earn (SAYE) Plan and the Share Incentive Plan.
We are pleased to have responded to the consultation, along with many companies, industry bodies and advisers. We hope that the responses will lead to continued cross-governmental support for these important and much-valued plans, along with simplifications to make them easier for companies to operate.
SAYE plans | Bonus rate mechanism updated and new rates
Companies operating SAYE plans will be aware that HMRC has updated its mechanism for calculating the bonus rates for SAYE participants and has published the rates and prospectus that apply from 18 August 2023. This is the first time new SAYE participants will receive a bonus since 2014.
Employee ownership trusts and employee benefit trusts | Consultation published
On 18 July 2023, the government published its consultation on proposals for targeted reform of the employee ownership trust tax regime. First announced in Spring 2023, the consultation has been expanded to include some specific proposals to reform the inheritance tax treatment of employee benefit trusts.
Enterprise management incentive options | Further administrative change in April 2024
Following on from the two administrative changes to simplify the process for granting enterprise management incentive options introduced earlier this year, a third change is due to take effect from 6 April 2024.
Employment law | Right to participate in a share incentive scheme of substantial equivalence transferred under TUPE
Our Employment Law Coffee Break Insight covers a recent Court of Session appeal decision which held that the right to participate in a share incentive scheme of substantial equivalence transferred under TUPE.
The Netherlands | Navigating Dutch tax and financial regulatory laws on non-fungible tokens
The tax and financial regulatory landscape of non-fungible tokens is rapidly evolving, with the impact of the EU Markets in Crypto Assets Regulation (MiCAR) on the horizon. Our experts look at the Dutch tax rules (including the wage tax implications).
Future of work | Understanding an ageing workforce
We recently launched our report on an Ageing Workforce. The report was produced by Censuswide, who surveyed 700 employees aged between 35-55 and working in different industry sectors across the UK. It explores areas including benefits, pensions, retirement planning, training and skillsets and offers employers a valuable tool in their planning for incentivising, supporting and retaining older employees.
The ability to work on a flexible basis and from different locations (including overseas) continues to be an important benefit, and one which could encourage employees to work longer before retirement.
Read the report here.