The complexities and barriers involved in ‘unapproved’ employee share schemes have been set out in an interim report published by the OTS. Comments on the report are requested by 26 October 2012.

By way of reminder, ‘Unapproved’ employee share schemes are share schemes and share based incentives which do not benefit from any tax advantages. The OTS carried out a similar review earlier in the year on ‘approved’ i.e. tax-advantaged share schemes.

Both reviews cover technical and administrative aspects and are aimed at identifying recommendations for simplifications to make it easier for employers to introduce and run such arrangements, as announced at Budget 2012.

The interim report is available from HM Treasury at:-http://www.hm-treasury.gov.uk/d/ots_unapproved_employee_share_schemes_interim.pdf