Wednesday 21 March 2012
Matthew Hunnybun, Tax Partner at KPMG said:
“We welcome the proposed increase of the individual limits for the tax-efficient Enterprise Management Incentive (“EMI”) to £250,000 along with the intention to extend the rules on Entrepreneurs’ Relief to EMI share option gains – although EMI remains of application to only a limited number of smaller companies.
“We also look forward to the Treasury’s proposals to encourage wider employee ownership which is promised for later in the year.
“Share based reward can help to encourage a more entrepreneurial environment in the UK, as well as helping companies manage both the cash and tax cost of rewarding its employees and aligning the interests of employees with the stakeholders of the business.”
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Judith Dow, KPMG Corporate Communications
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KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff. The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 152 countries and have 145,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.