The following Employment Tax guidance note by Tolley in association with Karen Cooper of CooperCavendish LLP provides comprehensive and up to date tax information covering:
When the disguised remuneration rules were published there was widespread concern that the legislation would catch many straightforward arrangements which did not involve tax avoidance, including employee share plans, HMRC registered pension schemes and benefits operated by third parties on behalf of employers. This resulted in the government introducing a detailed set of amendments to the legislation to provide exclusions and relieving provisions for certain types of arrangements. This note covers the main exclusions available.
There are a number of specific exemptions in the legislation for arrangements that support common types of employees’ share schemes. It is important to ensure that each step in the process is covered by a separate exclusion, as HMRC will treat the setting aside of assets (earmarking), and the grant of options or awards as distinct steps for the purposes of the rules. The statutory exemptions overlap, and in some cases are subject to certain terms and conditions.
These types of schemes benefit from the widest set of exclusions covering the following relevant steps:
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