Definition of employee shareholder status

Gains made on disposals of up to £50,000 worth of ‘employee shareholder’ shares have been exempt from capital gains tax (CGT), subject to certain conditions, from 1 September 2013 but it is proposed will cease under Finance Act 2017 with effect from 1 December 2016, along with the exemption from income tax charge arising on a distribution where a company bought back CGT-exempt shares.

It is also proposed that legislation will be repealed which provided that income tax and National Insurance Contributions (NICs) respectively would not be chargeable on the first £2,000 of share value received by eligible employee shareholders. [1]

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