Acquisition of Shares by Employees

Abstract

For many years an employee of a company who received shares as part of his remuneration has been liable to income tax under Schedule E on the value of the shares received. In more recent years there has been legislation aimed at taxing, at rates applicable to earned income rather than capital gains, the profits arising to employees from option schemes and share-incentive schemes. The detailed provisions are complex and only the basic outlines are discussed here.