The Autumn Statement itself had nothing of immediate interest on employee incentives and employee share schemes for employers.

However, on 9 December, draft legislation will be published which should reveal how the Government intends to deal with the following issues it has identified:

  • Certain share awards held by non-residents, where it has emerged that the tax and National Insurance treatment is not as was intended by last year’s legislation (broadly, that income tax and National Insurance is paid on the basis of time spent in the UK or in the UK National Insurance system), and
  • Asset managers’ performance-related capital returns in situations where the Government believes that there is underlying trading income which has been converted into capital. Industry bodies have been assured that normal carry will be protected, although the Government’s announcement says that “long term investment activity is required”.

Various other minor changes are proposed, but details of these have not been announced.

Click here to go to HM Treasury's Autumn Statement site.