The Government announced on Wed 12.6.2013, that it will undertake [amongst other things] a review into employee share schemes (ESS) to help address the barriers faced by start-up companies in attracting and retaining staff.

The ESS review will consider what measures could help address the barriers faced by start-up companies, such as:

  • developing guidance to reduce the administrative burden (meaning the cost of valuing shares and options) of establishing an ESS;
  • adjusting the valuation methodology of options; and
  • examining the point at which share options are taxed for start-up companies.

The review of the regulatory arrangements of employee share schemes will report to Government by December 2013. A consultation paper will be released shortly.

Source: Joint media release by Ministers Combet, Bradbury and Conroy, 12 June 2013

[LTN 111, 12/6/13]