Jenny Willott MP welcomes Coalition support for employee-owned companies

2013 Gorffenaf 4 12:44 PM

Jenny Willott, Liberal Democrat MP for Cardiff Central, is today supporting the first national Employee Ownership Day, raising awareness of the many benefits this way of running a business can have for employers, employees and the wider economy.

The Coalition Government has already announced £50 million of support annually from 2014-15 for the employee ownership sector, but today, on Employee Ownership Day, the Government has announced further proposals for two new tax reliefs to encourage, promote and support indirect employee-ownership structures.

One of the reliefs is for capital gains tax on the sale of a controlling interest in a business into an indirect employee ownership structure. The second is an exemption, up to a certain threshold, from income tax and employer and employee National Insurance Contributions on a bonus or equivalent payment paid to employees of an indirectly employee owned structure.

Commenting, Jenny Willott MP said:

"Employee Ownership is a really exciting approach to running a business which can bring huge benefits to everyone involved. Employees have both a stake and a voice in the success of their company and how it is run, encouraging engagement and innovation which is good for the business and good for employees. John Lewis is a great example in my constituency.

"I am delighted the Coalition Government is putting its money where its mouth is and consulting on how best we can support employee ownership businesses."

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