The Labour Party proposes requiring 10% of shares in all UK companies with more than 250 employees to be held by inclusive ownership funds (IOFs). Employees would receive dividends from the IOF shares (capped at £500 per employee per year), with the balance paid to the exchequer. The proposal is therefore economically somewhat akin to an uncreditable tax on distributed corporate profits and a wealth tax on holders of UK equities. It is not technically a tax, however, and that has peculiar consequences.
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The Labour Party proposes requiring 10% of shares in all UK companies with more than 250 employees to be held by inclusive ownership funds (IOFs). Employees would receive dividends from the IOF shares (capped at £500 per employee per year), with the balance paid to the exchequer. The proposal is therefore economically somewhat akin to an uncreditable tax on distributed corporate profits and a wealth tax on holders of UK equities. It is not technically a tax, however, and that has peculiar consequences.
If you are not a subscriber, subscribe now to read this content.
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