Budget reforms aimed at encouraging employee share ownership are a welcome boost for business, according to Johnathan Dudley, Midlands managing partner of national audit, tax and advisory firm, Crowe Clark Whitehill.
His comments follow changes to the Enterprise Management Incentive Scheme.
EMIs are tax advantaged share options and are designed to help small, higher risk companies recruit and retain employees who have the skills to help them grow and succeed. They are also a way of rewarding employees for taking a risk by investing their time and skills to help SMEs achieve their potential.
The changes see the extension of Entrepreneurs Relief, a reduced rate of capital gains tax, to shares acquired through an EMI scheme and a rise in the individual limit of the value of shares subject to EMI options from £120,000 to £250,000.
Mr Dudley said: “SME growth is vital for the future of the economy.
“This move by the Government will help incentivise employees and directors to own shares in their companies.
“We need more entrepreneurs, willing to take sensible risks, to drive business forward and wider SME share ownership.”