1. Global strategies
  2. Creating worker-owned businesses

Creating worker-owned businesses

  • Converting to employee ownership
  • Promoting employee share ownership

Implementation

In his March 1999 Budget the Chancellor of the Exchequer Gordon Brown announced a new all-employee share scheme to be introduced in 2000. This scheme will for the first time allow employees to allocate part of their pre-tax salary to buy shares in their employer's company without paying income tax or National Insurance Contributions (NICs) on those shares. If the shares are held for three years, the employee will be subject to income tax on the amount of salary allocated to those shares when they are taken out of the scheme, but the longer the shares are held in the scheme the lower the proportion of the salary that will normally be subject to tax.

Employees will also be able to receive free shares and employers will have more flexibility in providing free shares, including matching the shares bought by employees. Shares given to employees will be free of income tax and NICs if they are kept in the scheme for three years. Any gains arising on either free or bought shares while they are in the scheme will be completely tax free.

Employee Ownership Options has been set up with the assistance of the EU ADAPT programme to provide information on how employee ownership can bring benefits to employees, business owners and trade unionists.

Broader

Facilitates

Facilitated by

Web link

SDG

Sustainable Development Goal #8: Decent Work and Economic GrowthSustainable Development Goal #12: Responsible Consumption and Production

Metadata

Database
Global strategies
Type
(E) Emanations of other strategies
Subject
  • Social activity » Employees
  • Social activity » Workers
  • Communication » Promotion
  • Commerce » Property
  • Content quality
    Unpresentable
     Unpresentable
    Language
    English
    1A4N
    J1588
    DOCID
    12015880
    D7NID
    209285
    Last update
    Aug 16, 2018