Bill outlining share incentive plans moves a step closer

The Employee Shares Schemes Bill drafted by Field Fisher Waterhouse partner Graeme Nuttall and Co-operative Party lawyer Peter Townsend has passed its committee stage in the House of Commons in just 16 minutes.

The Bill encourages the appointment of employee-elected trustees to share incentive plans (SIP), which aim to bolster the use of employee ownership in private companies (see [2002] Gazette, 31 January, 8).

It will also provide a new tax relief - an upfront corporation tax deduction - for the cost of buying shares for the purposes of a SIP.

Paymaster-General Dawn Primarolo MP said the government would support further tax-saving changes to the Bill - introduced by Scottish Labour MP Mark Lazarowicz - at the report stage.

Mr Nuttall said he and the other lawyers involved - including Ann Tyler, a solicitor with Job Ownership - would now work with the Inland Revenue to bring the Bill to the statute book before the end of the current parliamentary term.