Pre-budget report 2006: Share plan limit still too low

Published at 11:27 AM on 06 December 2006

Carol Dempsey, reward and compensation, partner PricewaterhouseCoopers LLP, said: “It is disappointing that HM Revenue & Customs (HMRC) has not taken the opportunity to carry out any review of tax approved share plans. The tax approved limit under the Company Share Option Plan, which was set at £30,000 in 1995, has stood still while the stock market has risen by around 80% since that time. “The limits for the Share Incentive Plan (SIP) which was first introduced in 2000 (e.g. allowing employers to gift up to £3,000 of free shares to employees each year)  are now looking somewhat outdated and due for an upward review.  Other possible changes, such as allowing full tax relief after three years rather than five could also improve the attractiveness of the SIP for employers and employees.”    ENDS

Notes to Editors:

1. PricewaterhouseCoopers experts are available on Pre-Budget Report day for comment and analysis. Please call the Pre-Budget hotline on 020 7213 4311 or visit 

For more information contact:

Lydia Ruffles
Financial Services, PR Manager, PwC 
Tel:+44 (0)20 7212 1798 
Mobile:07966 319 780 

Carol Dempsey
Partner, PricewaterhouseCoopers LLP 
Tel:020 7212 4641 


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