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How to decide whether or not to make use of employee-shareholder status

Author: James Jaques

NOTE:The tax advantages linked to shares awarded under employee-shareholder agreements have been abolished for arrangements entered into on or after 1 December 2016 (see Tax treatment of employee-shareholder shares).

The Chancellor of the Exchequer also announced, in the Autumn Statement 2016, that the status itself will be closed to new arrangements at the next legislative opportunity, in response to evidence that it is primarily being used for tax-planning purposes by high-earning individuals. On 20 June 2019, the Department for Business, Energy and Industrial Strategy confirmed to XpertHR that this is still the Government's intention.


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