As part of the Government’s update to the National Digital Economy Strategy, on 12 June 2013 they have announced a review of the regulatory arrangements for employee share schemes which will see consultation by December 2013.
Due to concerns raised by several industry sectors about the current tax arrangements that apply to share and option schemes offered by start-up firms, the government will review the situation and address the barriers faced by start-ups including:
- developing guidance to reduce the administrative burden of establishing an ESS (meaning the cost of valuing shares and options)
- adjusting the valuation methodology of options
- examining the point at which share options are taxed for start-up companies