Richard Boyd Barrett criticises SME share tax relief scheme
Richard Boyd Barrett criticised a share-option tax relief scheme for small and medium enterprise, calling it ineffective and the wrong way to encourage SME growth. He said the scheme should be rethought and scrapped, while noting that share schemes can help SMEs compete with large companies.
Assessment of the scheme
The Deputy argued the scheme "hasn't been a particularly effective scheme" and that giving tax breaks to shares only when they become valuable is doing it "the wrong way round." He said the reliefs are not generating the expected benefits and suffer from some of the same flaws as other tax reliefs based on high earnings or profit.
Support for worker share schemes
The Deputy said he believes workers owning "the factors of production and the means of production" makes it desirable for workers to benefit from company value. He told colleagues that many small and medium-sized companies in the technology area use share schemes and share options to keep offers competitive with very large companies.
Tax incentives and the KEEP programme
The Deputy said he does not believe taxation is necessary to incentivise the issuance of share options, but acknowledged that the KEEP programme is a support to companies developing share schemes. He suggested there are better ways to support SMEs than the current tax-relief approach.
Recommendation and rhetorical note
On the basis of his critique, the Deputy said he "really think[s] we should rethink and scrap this scheme" but added he would not labour the debate at that point. He also noted, with a nod to political theory, that invoking Karl Marx in support of share options might be a difficult sell, but he "thought I'd give it a try."
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Deputy Boyd Barrett I have very little to say on this except I think it hasn't been a particularly effective scheme and I think that there are better ways to support small and medium enterprise but I think when if the idea is that when shares become valuable that you give a tax you know you give basically tax breaks to shares that become valuable that's doing it the wrong way round but it's not it isn't really working in any event in terms of the sort of benefits that have arisen out of it but I just think it's the wrong way to encourage or promote small and medium enterprise and I think it suffers from some of the same flaws if you like that other tax reliefs that you give based on either high earnings or profit have and you're well aware of my opinions on those so it's on that basis I really think we should rethink and scrap this scheme but I won't labour the debate at this point. I think the Deputy has been brief I will be too given that the Deputy I'm sure supports the workers owning the factors of production and the means of production I would have thought it might be kind of possible for you to see the attraction of ensuring that workers are able to benefit from the value of the company that they're in and I take your point regarding if your point is as I understand it regarding do we need taxation itself to incentivise the issue of share options. I don't believe I don't believe that we do but I do know Deputy from talking to many small and medium-sized companies who are in the technology area that a way in which they can ensure that what they are offering their workers is competitive with what the very large companies are offering is through the development of share schemes and share options schemes and the keep programme is a support to them in doing that but I accept that it might be difficult to invoke Karl Marx in making an offer an argument for share options schemes Deputy but nonetheless I thought I'd give it a try. Chosenberg Chosenberg Chosenberg Chosenberg Pag or there are percentage points Change the first time Don't tell us all in your permission And you have milieu of course Joining this time Вы е Next To fif
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