HC Deb 11 April 1978 vol 947 c1201

I also wish to encourage profit-sharing in this year's Finance Bill. Profit-sharing schemes can encourage the employees of a company to identify themselves more closely with their company. As the hon. Member for Cornwall, North (Mr. Pardoe) has often emphasised, this can help to improve the relationship between employees and employers, encourage greater efficiency and stimulate growth. But if it is not simply to give relief to the higher paid there must be a ceiling to the amount of relief to which any one taxpayer can be entitled. So there will be a limit of £500 a year to the value of shares which can be allocated tax-free to any one employee. My proposals will take effect from next year and will broadly follow Method III as set out in the Inland Revenue's consultative document published last February. There will, of course, be full details in the Finance Bill.