Tax implications for companies and employees in relation to employees trading their shares on PISCES

The Private Intermittent Securities and Capital Exchange System (PISCES), a new type of stock market, will facilitate secondary trading of private company shares on an intermittent basis. HM Treasury (HMT) willis planning to lay secondarya legislationstatutory instrument before Parliament in May 2025 to implement implement PISCES. Trading on on PISCES is is likely to begin later in 2025.   2025.

HM Treasury ran a consultation on PISCES from March to April 2024 and published a summary of responses in November 2024.

Many respondents submitted questions about tax implications for companies and employees in relation to employees trading their shares on PISCES. 

This technical note aims to address the questions raised and provide clarity on the tax implications. It sets out the tax consequences:

• when employees acquire shares in the companies they work for
• how the readily convertible asset rules apply
• howhow a PISCES trading tradingevent windowswill interact with the tax advantaged share schemes,schemes: Enterpriseenterprise Managementmanagement Incentivesincentives (EMI)(EMI), andcompany Companyshare Shareoption Optionplan Plan(CSOP), (CSOP)Save As You Earn option scheme (SAYE) and share incentive plans (SIPs)
• when Capital Gains Tax is chargeable
• share valuation rules