Treasury seeks views on tax reliefs for 'John Lewis' firms Nick Clegg, the Deputy Prime Minister, last year called for the creation of a "John Lewis economy." John Lewis, the department store group, is owned by its employees and distributes its profits between them. In the 2013 Budget the government said it would provide £50m a year, from 2014-15, to employee owned businesses. The Treasury said the consultation would focus on forms of indirect employee ownership - such as employee benefit trusts where shares are held collectively on behalf of the employees. It will run until September 26 and look at: A capital-gains tax relief which would apply when the controlling share of a business is sold into an indirect employee ownership structure. This would encourage individuals wishing to sell their business to consider an indirect employee ownership structure, leading to the creation of new indirect employee ownership structures. An income tax and national insurance contributions (NICs) exemption. This would allow indirectly employee owned companies to pay their employees a certain amount per annum, free of income tax and NICs. There would also be an employer NICs exemption for the company. Earlier this year the Government confirmed that the first £2,000 worth of shares bought by employees will be free from income tax and National Insurance contributions. However, experts warned the scheme leaves employees buying shares over the threshold with a sizeable tax bill.