Mon, 1 Aug 2011

OTS announces share schemes review

The Office of Tax Simplification (OTS) will investigate share schemes as part of its continuing work to simplify the UK tax system.

Exchequer secretary David Gauke confirmed the decision last month, after Rt Hon Michael Jack, chair of the OTS, expressed his desire to pursue the matter.

In his letter, he suggested a review to assess scope for streamlining more than 6,000 approved share schemes before investigating the complex rules surrounding unapproved schemes.

‘Consultation with businesses confirm these schemes are a complex area of the tax code, with too many traps for the unwary, especially HR departments that often run such plans,’ he said.