The eoa has been notified that HMRC has actioned two changes to the EOT guidance in response its feedback alongside that of Graeme Nuttall.
Although small, the changes pertain to clarity and add in the below costs that were included in the EOT legislation around the new distributions tax exemption, but were missed out of the guidance:
- Any liability to stamp duty or stamp duty reserve tax on the acquisition;
- Such other reasonable expenses as are directly connected with the acquisition (but this does not include any expenses incurred in connection with the ownership of the ordinary share capital once acquired).
These two amendments came out during the Finance Bill’s parliamentary process and were a result of joint calls from the eoa and the Chartered Institute of Taxation to broaden the list of permitted acquisition costs.
Although minor, the changes are significant in showcasing our ongoing relationship with the treasury and our presence in the policy space.