Draft Finance Bill 2016 Clause 12 Reduction of pensions lifetime allowance - CIOT comments
The legislation aims to clarify the tax treatment of RSUs provided to IMEs through unapproved share schemes, as the existing law has proved to be unclear in practice. The proposed amendments will, for the most part, provide the clarity of treatment that the Office of Tax Simplification (OTS) has previously recommended. However, the CIOT believes that confusion will remain in regard to the definition of a ‚ right to acquire‚ where the employer has the discretion to award cash or shares, i.e. where there is a cash alternative. We therefore recommend that HMRC provide clear guidance to address when a cash alternative exists.
The amending legislation is expected to be included in the Finance Bill 2016 when it is published in March 20156 and will take effect from 6 April 2016.