Clause 39 - Corporation tax relief for employee share acquisitions etc

Part of Finance Bill – in a Public Bill Committee am 3:15 pm ar 4 Mehefin 2013.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Chris Leslie Chris Leslie Shadow Minister (Treasury) 3:15, 4 Mehefin 2013

Indeed, I hope that that is the case. I support employee share ownership in small business arrangements; I agree with the hon. Gentleman totally on that matter. However, I do not agree with the rather curious, byzantine policy of asking employees to waive their employment rights in exchange for share options— something that we will debate later.

I am not sure about the ceiling on share acquisitions by employees and whether the policy is open as a practice for remuneration at higher levels. To what extent can such provisions be used as the main way in which bankers are remunerated? The practice will become increasingly common, not just with shares, but with contingent convertible instruments and other financial instruments with ongoing liability for the individual who has been paid, but may have sums clawed back if the company’s performance turns down in the long term.

Remuneration in that sector is becoming more complicated. That is my general point. I hope that it is not unreasonable to ask what the tax arrangements are, given that extra complexity.