September asset taper relief deadline looms for employees holding reduced value shares

Employees who have acquired shares at reduced values as part of incentive schemes face losing capital gains tax privileges unless they act by 2 September. The changes affect employees who have been issued shares or securities subject to restrictions that reduce their market value, on the basis this value will increase between acquisition and eventual sale. Under 2003 Finance Act legislation, which received Royal assent on 10 July, shareholders and their employers can jointly agree to ignore the market value restrictions for income tax purposes, meaning the employee pays tax on the full ...