Origen has launched†a partnership pension scheme (PPS) which will enable employers to offer staff the opportunity to †transfer shares from an employee share scheme†into a†pension scheme.
After five years, any growth in shares’ value is free from capital gains tax, and the dividends free from income tax. If these shares are transferred into a pension fund as a contribution they qualify for full tax relief.
Claire Court, head of self administered pensions at Origen, said: “Our PPS works through the framework of a group self-invested personal pension (Sipp). On the fifth anniversary of the sharesave scheme, an employer is now able to offer a third option, along with inviting the employee to sell shares or re-register the shares in [their] name.
“Now the employee can pay an in specie contribution into the group Sipp by transferring some or all of the company shares he has received. The Sipp will reclaim the basic rate tax relief and this will be added to the employee’s fund. It is then down to the employee to claim the higher rate tax relief via [their] tax return.”