Consultation on employee share scheme timing issues

Inland Revenue has launched consultation on a policy proposal to address a taxation timing issue for employee share schemes offered by start-up companies.

The proposal suggests deferring the taxation point for eligible schemes, as well as the company's deduction, until a liquidity event occurs to fund the tax on income. Officials seek views on the desirability and feasibility of such an approach. Consultation closes on 14 March 2025.