§ Mr. William PowellTo ask the Chancellor of the Exchequer how many schemes have been approved by the Inland Revenue for profit sharing and share option382W schemes under the Finance Act 1988, sections 185–87 and schedules 9 and 10 for employees of unquoted companies; and how many such employees are covered.
§ Mr. MaudeSchemes approved by the Inland Revenue up to March 1991, under legislation now contained in the Income and Corporation Taxes Act 1988, including 4,721 discretionary share option schemes and 1,934 all-employee share schemes. Of the latter, 962 were profit-sharing schemes and 972 were savings-related share options schemes. It is estimated that about 200,000 and 2.25 million individual employees had participated in these discretionary and all-employee schemes, respectively, up to the end of March 1990.
These schemes, many of which include several companies, relate to both quoted and unquoted companies. I regret that information about the numbers of unquoted companies and their eligible employees covered by these approved schemes could not be obtained without disproportionate cost.
§ Mr. William PowellTo ask the Chancellor of the Exchequer how many employee trusts established by unquoted companies the Inland Revenue have accepted as qualifying employee share ownership trusts under the Finance Act 1989, section 74 and Schedule 5; and how many employees are now potential beneficiaries under such trusts.
§ Mr. MaudeThe Inland Revenue may not learn of the establishment of employee share ownership trusts as defined in the Finance Act 1989 until claims for tax relief are received. Such claims may be made up to two years after the end of the period of account in which the relevant company contributions are made. One trust established by an unquoted company has been accepted as a qualifying employee share ownership trust; it covers about 25 employees. Further trusts are likely to be accepted as qualifying shortly.