Autumn Budget 2017—Employment taxes and share incentives

This analysis is part of the Lexis®PSL Tax team’s summary of the Autumn Budget 2017.   Some of the links require a LexisPSL subscription. If you are not a subscriber, you can take a free trial here.

Disguised remuneration

The government has confirmed the final part of the package of amendments to the disguised remuneration regime that was originally announced at Budget 2016. Provisions will be included in FB 2018 to:

• make changes to the new close companies gateway, which originally formed part of FB 2017 but, as announced at Spring Budget 2017, was delayed for implementation until 6 April 2018 in order to allow time for further consultation. The gateway will be revised to clarify how the regime applies to the remuneration of employees and directors who have a material interest in their close company employer and to put beyond doubt that ITEPA 2003, Part 7A applies regardless of whether contributions to disguised remuneration avoidance schemes should previously have been taxed as employment income. This change will involve an amendment to ITEPA 2003, s 554A and will have effect from 22 November 2017, and
• make further revisions to the provisions which impose charges on disguised remuneration loans outstanding on April 2019. These provisions were originally announced at Budget 2016 and are included in Finance Act (No 2) 2017. They will now be amended to include new obligations on affected employees and self-employed individuals to notify their employer and HMRC by 1 October 2019 of certain loan charge information between April 2019 and October 2019. There will also be an amendment to section 689 of ITEPA 2003 to ensure that an employee who benefitted from the disguised remuneration avoidance scheme is liable for the tax arising on the loan charge where their employer is