UK Stock Options Incentives Set to Pass

According to the Employee Share Ownership Centre in London, the Blair government has introduced legislation that would expand the existing Enterprise Management Incentive plan. Under current the plan, companies with gross assets of under $15 million pounds can to offer up to 15 of their staff stock options that will not be subject to income or other payroll taxes. Capital gains tax generally will be paid only when the shares are sold, and the longer assets are held, the lower the rate. If an employee holds the options or shares from the exercise of options for four years or more, the top capital gains tax rate would be just 10 per cent. Employees can receive up to 100,000 pounds in option value. The new proposal, which appears certain to pass, would eliminate the restriction on the number of employees eligible, but limit the total amount that could be granted to 3 million pounds per company.