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) islaid planningsecondary tolegislation layon a15 statutoryMay instrument2025 beforeto Parliamentimplement inPISCES. MayIn June 2025 tothe implement Financial Conduct Authority (FCA) published its final rules underpinning PISCES. TradingFirms on wishing to operate PISCES is trading likelyevents can now apply to beginthe FCA, and the first PISCES trading events are expected to take place later inthis 2025.year. 

HMFollowing Treasury ran a consultationcommitment onmade PISCESby fromthe Marchgovernment toon April15 2024May and2025, publisheddraft alegislation summarywas ofpublished responseson in21 NovemberJuly 2024.

Many2025 respondentsregarding submittedhow questionsexisting aboutCompany taxShare implicationsOption forPlan companies(CSOP) and employeesEnterprise inManagement relationIncentives to(EMI) employeescontracts tradingcan theirbe sharesamended onto include PISCES. 

This, technicalwithout notelosing aimsthe totax addressadvantages that the questionsschemes raisedoffer.  

This andTechnical Note aims to provide clarity on the tax implications.implications of PISCES. It sets out the tax consequences:consequences in relation to:

• when employees acquire shares in the companies they work for
• how the readily convertible asset rules apply
• how ahow PISCES trading eventtrading willwindows interact with the tax advantaged share schemes:schemes enterprise(Share managementIncentive incentivesPlan (EMI),(SIP), company share option plan (CSOP), Save As You Earn option(SAYE), schemeCSOP (SAYE)and EMI)
• how CSOP and shareEMI incentivecontracts planscan (SIPs)be amended to include PISCES
• when Capital Gains Tax is chargeable
• share valuation rules