Dan Neidle and Nicola Hemsley (Clifford Chance) explain how these might operate and consider the anomalies and potential solutions.
At the Labour Party conference in September 2018 Shadow Chancellor John McDonnell announced a proposal to require 10% of the shares in all large UK companies (defined as those with over 250 employees) to be owned by inclusive ownership funds (IOFs). This article considers how such a measure would effectively act as a combination of a wealth tax giving rise to a remarkable mismatch between the costs of IOFs to investors and the benefits to employees and an increase in the corporation tax rate likely without being creditable in other jurisdictions.
Labour’s proposal explained
Under Labour’s proposal 1% of shares in all UK companies with more than 250 employees would be acquired by an IOF each year for a decade until a 10% holding is...
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Dan Neidle and Nicola Hemsley (Clifford Chance) explain how these might operate and consider the anomalies and potential solutions.
At the Labour Party conference in September 2018 Shadow Chancellor John McDonnell announced a proposal to require 10% of the shares in all large UK companies (defined as those with over 250 employees) to be owned by inclusive ownership funds (IOFs). This article considers how such a measure would effectively act as a combination of a wealth tax giving rise to a remarkable mismatch between the costs of IOFs to investors and the benefits to employees and an increase in the corporation tax rate likely without being creditable in other jurisdictions.
Labour’s proposal explained
Under Labour’s proposal 1% of shares in all UK companies with more than 250 employees would be acquired by an IOF each year for a decade until a 10% holding is...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
