UK: Treasury consults on tax relief for indirect employee ownership

HM Treasury has published a consultation paper titled Supporting the employee-ownership sector: see here (pdf). The paper sets out proposals for two new tax reliefs that the Government plans to introduce in respect of indirect employee ownership. The first is a capital gains tax relief on the sale of a controlling interest in a business into an indirect employee ownership structure. The second is an income tax and national insurance contribution exemption for employees of companies where a significant proportion of the company is owned by a trust whose purpose is to benefit its employees.