UK Budget Proposals on Stock Options and Employee Ownership

On March 23, the UK's Chancellor of the Exchequer announced proposals that would affect several areas relevant to employee ownership. Specifically, the proposal would provide support and loosen restrictions on Enterprise Management Incentive (EMI) stock options. The office said it would examine any existing barriers in the tax code to the formation of employee ownership companies and promised to give consideration to proposals currently under development by other government offices. These announcements come in the wake of many strong statements of support for employee ownership from senior political leaders within and outside the governing coalition.