Treasury outlines tax breaks for John Lewis-style companies

 
Michael Bow
Follow Michael
GOVERNMENT yesterday outlined plans for £50m of tax relief perks to help boost the number of John Lewis-style employee owned companies.

The Treasury said it would introduce a capital gains tax relief on any controlling interest sold on into an indirect employee ownership business model, in a bid to attract owners to offload their stakes to employees.

It is also proposed that workers should be exempt from income tax and national insurance contributions on bonuses if they work for a company operating under an employee-owned model.

The proposals follow on from a Treasury pledge from March’s Budget to provide £50m a year to support more employee ownership structures.

“Employee ownership is of significant benefit to the wider economy, through increased growth and business success and this business model will also add greater diversity to our economy,” chief secretary to the Treasury Danny Alexander said in a statement.

John Lewis is one of the best known employee-owned companies, with staff owning the company through a special trust structure.