Employee share tax: ten topical myths

Article by David Cohen, partner, Norton Rose. This article appeared in the April 2006 issue of Tax Adviser. As the introduction of more anti-avoidance legislation makes the tax treatment of employee share benefits increasingly complex, it is not surprising that a gulf has developed between the perception of how such benefits are taxed and the reality. What follows are 10 prime examples

of myths that, in the author's experience, are widely believed, even by those who should know better.

While the discussion below centres on the income tax treatment of employee share benefits, in most situations NICs will follow tax (but see Myth 5).

April 2006 by David Cohen

Technical Department
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