“Early Bird” insight into new tax breaks
It’s not wise to count the chickens before they have hatched, but consultation has begun on the possible introduction of new tax reliefs to encourage businesses to further consider employee ownership.
This is where businesses are encouraged to sell their controlling share into an indirect employee ownership structure.
Why would a business owner want to do this?
Well, businesses with this structure have an excellent record of sustainability and success, largely because their employee co-owners are more committed to making sure the business does well and have a greater focus on profits and business expansion.
What are the proposed tax benefits?
Amongst other things, the following tax benefits could become available, under the right circumstances:
- Capital Gains Tax relief for the company
- Employer exemption from National Insurance contributions
- Income tax exemptions – when the company pays a certain amount each year to their employees
More to follow…
The consultations are still in their early days, but there is real potential here for significant tax breaks to add to the advantages it could bring your business. You will be the first to hear when we do…although timeframes are uncertain right now.