For those operating mainstream (non tax-aggressive) share plans the immediate concern must be to ensure that their share plans do not fall foul of ITEPA 2003 Part 7A enacted by this year’s Finance Act which sets out the new disguised remuneration legislation.
There is a particular risk that the operation of employee benefit trusts (EBTs) which have been set up to deliver shares under the plans could trigger early ‘earmarking’ charges.
The ambit of Part 7A is so wide and the exemptions are so prescriptive that it will be no easy task to avoid the charges.
Share plans involving the immediate issue of new shares will generally not be caught...
