The Treasury has published a technical note covering the tax implications for companies and employees in relation to employees trading their shares on the Private Intermittent Securities and Capital Exchange System (PISCES) which is likely to begin trading later in 2025.
PISCES is a new type of stock market and will facilitate secondary trading of private company shares on an intermittent basis.
In response to a consultation on PISCES last spring, many respondents submitted questions about tax implications for companies and employees in relation to employees trading their shares on PISCES. The technical note sets out the tax consequences:
- when employees acquire shares in the companies they work for;
- how the readily convertible asset rules apply;
- how PISCES trading windows interact with tax advantaged share schemes; and
- when capital gains tax is chargeable share valuation rules.
The Treasury will lay secondary legislation in May to implement PISCES.
