Introduction Summary
1.Section 55 introduces Schedule 23 which concerns the tax treatment of ‘employee shareholder shares’, which are shares provided in consideration of an agreement to be an employee shareholder. Subject to certain conditions, gains on disposals of employee shareholder shares worth up to £50,000 on receipt will be exempt from capital gains tax (CGT). In addition, subject to certain conditions, no income tax will be chargeable on the first £2,000 of share value received when an individual becomes an employee shareholder. For corporation tax purposes however, companies will be entitled to relief against this £2,000 amount where the general conditions for this relief are met. Individuals considering an employee shareholder agreement will also usually not be liable a tax charge when they receive independent legal advice in relation to that agreement.