New legislation to cap European bankers’ bonuses took effect from 1 January 2014.
The legislation, which was agreed in March 2013 by the European Parliament and European Commission, will apply to bonuses paid in 2015.
The law means that:
- A salary/bonus ratio of 1:1 can be raised to 1:2 with a shareholder vote of 65%.
- Up to 25% of the bonus can be paid in long-term instruments (deferred for five years) linked to the capital, and therefore stability, of the bank.
The UK government attempted to stop the proposal going through in March 2013, but was overruled by European politicians.
Sharon Bowles, chair of the European Parliament’s Economic and Monetary Affairs Committee, said that the cap is intended to realign the ratio between work and reward.
Whether a City Banker or not, if you are facing a large tax bill, after receiving a super-bonus, then an EIS investment would help you secure a TAX REFUND or OFFSET a tax bill?
EIS is a little known solution that lets you invest your cash and then claw back a big chunk of tax to be paid (30%) and then, exit your investment after 3 years, CGT FREE – win-win? The same applies to any savvy private investors that have exceeded their CGT allowances.
So, you would do well to invest into an Enterprise Investment Scheme (EIS) start-up. Upon investing, you will be eligible for, not only a generous 30% tax refund, but you can also “roll-over” your capital gains to qualify for a further CGT deferral of 28% – and exit after 3 years CGT FREE – on any sized profit!
One such EIS investment that, in my view, is gearing up to be a big potential winner is http://www.africanewenergies.com (part of the Alumni Oil Group) who have created an oil & gas exploration through the EIS that is now at a point of demonstrating hard evidence that they have discovered a multi-billion barrel new oil province – potentially worth many hundreds of billions of pounds and, as an unlisted EIS share, they can still be bought into at just 20p (currently) with vast upside potential when ANE strike oil, having wisely invested your city bonus or rolled over your other CGT gains, you could potentially realise a several hundred times uplift! For more info click this link: http://www.youtube.com/watch?v=AWFqnbs8Q-0