Double tax relief on horizon for employees
13 April 2004
Employee shareholders are set to receive double tax relief as a result of changes to the Finance Bill.
Accountants PriceWaterhouseCoopers welcomed last week's alterations to the share holding and pension schemes.
Calling it a "pleasant surprise for employee shareholders", the company pointed out that under the new rules many workers are able to claim double tax relief for contributing shares acquired through a save as you earn (SAYE) option plan or share incentive plan (SIP) into a registered pension scheme.
The changes will take effect from April 6th 2006, with employee shareholders able to claim income tax relief for the value of shares contributed into a registered pension scheme if acquired through SAYE or SIP.
Reward and compensation partner at PricewaterhouseCoopers, Carol Dempsey said of the changes: "This could provide double tax relief for many employee shareholders. The generous reliefs will undoubtedly heighten the appeal of SAYE and SIPs as wealth creation vehicles."
She further commented: "Further relief will be available for those employees who contribute shares to a registered pension scheme, gaining tax advantages in the same way as any other plan contribution."
Gordon Brown last week published the Finance Bill, running to an enormous 600 pages - making it the largest to date. Mr Brown himself also makes history as the chancellor who has made the most changes to the UK's tax regime.