Today the Government have announced there will be new legislation in divorce law. This new law will update the Matrimonial Causes Act 1973 in due course. It will mean that, in the future when the legislation comes into force, divorcing couples will no longer have to ‘blame’ each other for the breakdown of their marriage. It is hoped the new law will help reduce family conflict.
If you grant an EMI option to an employee then you are able to lock the value of the share for tax purposes to its value when the option is granted. So any growth in the value of the shares in the company after the option is granted can be acquired by the employee without any liability to pay income tax. On a sale of the shares the employee would then pay capital gains tax but should be able to benefit from entrepreneur’s relief. The company may also be able reduce its corporation tax liability when the options are exercised.