Employment-related securities | Croner-i Tax and Accounting

– see also Employee share schemes

Acquisition at less than market value

Additional securities

Legislation/Regulatory – ITEPA2003 s. 421D

Amount of notional loan

Legislation/Regulatory – ITEPA2003 s. 446T

Associated persons, meaning

Legislation/Regulatory – ITEPA2003 s. 421C

Avoidance cases, pre-acquisition

Legislation/Regulatory – ITEPA2003 s. 446UA

Changes in interests

Legislation/Regulatory – ITEPA2003 s. 421D

Company shares of a class

Legislation/Regulatory – ITEPA2003 s. 446R

Consideration

Legislation/Regulatory – ITEPA2003 s. 421I

Consideration, meaning

Legislation/Regulatory – ITEPA2003 s. 421A

Definitions

Legislation/Regulatory – ITEPA2003 s. 446W

Discharge of notional loan

Legislation/Regulatory – ITEPA2003 s. 446U

Employee-controlled, meaning

Legislation/Regulatory – ITEPA2003 s. 421H

Exclusions

Legislation/Regulatory – ITEPA2003 s. 421E-421G

Generally

Legislation/Regulatory – ITEPA2003 s. 446Q, 446R

Information, duty to provide

Legislation/Regulatory – ITEPA2003 s. 421J, 421K, 421L

Market value, meaning

Legislation/Regulatory – ITEPA2003 s. 421

Negative amounts treated as nil

Legislation/Regulatory – ITEPA2003 s. 419

HMRC Guidance – COG-A-Z ; ERSM20390

Notional loan

Legislation/Regulatory – ITEPA2003 s. 446S

Public offers

Legislation/Regulatory – FA2004 s. 89(1), (4), (5) ; ITEPA2003 s. 421F

Replacement securities

Legislation/Regulatory – ITEPA2003 s. 421D

Reportable events

Legislation/Regulatory – ITEPA2003 s. 421K, 421L

Residence

Legislation/Regulatory – ITEPA2003 s. 421E

Securities, meaning

Legislation/Regulatory – F(No. 2)A2005 Sch. 2, para. 2(7), (8) ; ITEPA2003 s. 420

Transitional provisions and savings

Legislation/Regulatory – ITEPA2003 Sch. 7, para. 28, 29

Acquisition of

Commentary – Dalby on Employee Share Schemes - Equity Reward for Private Companies ¶3

Additional securities

Legislation/Regulatory – ITEPA2003 s. 421D

Application of regime

Commentary – Dalby on Employee Share Schemes - Equity Reward for Private Companies 1.3.3

Artificially depressed market value

Acquisition, charge on

Legislation/Regulatory – ITEPA2003 s. 446B-446D

Additional securities

Legislation/Regulatory – ITEPA2003 s. 421D

Adjustment of consideration or benefit received

Legislation/Regulatory – ITEPA2003 s. 446I

Adjustment of market value

Legislation/Regulatory – ITEPA2003 s. 446F-446H

Associated persons, meaning

Legislation/Regulatory – ITEPA2003 s. 421C

Changes in interests

Legislation/Regulatory – ITEPA2003 s. 421D

Charge on conversion

Legislation/Regulatory – ITEPA2003 s. 446H

Conditional interests, adjustment of market value

Legislation/Regulatory – ITEPA2003 s. 446F

Consideration

Legislation/Regulatory – ITEPA2003 s. 421I

Consideration for entitlement to convert, adjustment of market value

Legislation/Regulatory – ITEPA2003 s. 446G

Consideration, meaning

Legislation/Regulatory – ITEPA2003 s. 421A

Definitions

Legislation/Regulatory – ITEPA2003 s. 446J

Disapplication of exceptions from charges

Legislation/Regulatory – ITEPA2003 s. 446IA

Employee-controlled, meaning

Legislation/Regulatory – ITEPA2003 s. 421H

Exclusions

Legislation/Regulatory – ITEPA2003 s. 421E-421G

Generally

Legislation/Regulatory – ITEPA2003 s. 446A

Information, duty to provide

Legislation/Regulatory – ITEPA2003 s. 421J, 421K, 421L

Market value, meaning

Legislation/Regulatory – ITEPA2003 s. 421

Negative amounts treated as nil

Legislation/Regulatory – ITEPA2003 s. 419

Public offers

Legislation/Regulatory – FA2004 s. 89(1), (4), (5) ; ITEPA2003 s. 421F

Replacement securities

Legislation/Regulatory – ITEPA2003 s. 421D

Reportable events

Legislation/Regulatory – ITEPA2003 s. 421K, 421L

Residence

Legislation/Regulatory – ITEPA2003 s. 421E

Restricted securities

Legislation/Regulatory – FA2004 s. 87(4), (5) ; ITEPA2003 s. 446D, 446E

Securities, meaning

Legislation/Regulatory – F(No. 2)A2005 Sch. 2, para. 2(7), (8) ; ITEPA2003 s. 420

Artificially enhanced market value

Additional securities

Legislation/Regulatory – ITEPA2003 s. 421D

Associated persons, meaning

Legislation/Regulatory – ITEPA2003 s. 421C

Changes in interests

Legislation/Regulatory – ITEPA2003 s. 421D

Consideration

Legislation/Regulatory – ITEPA2003 s. 421I

Consideration, meaning

Legislation/Regulatory – ITEPA2003 s. 421A

Definitions

Legislation/Regulatory – ITEPA2003 s. 446P

Disapplication of exceptions from charges

Legislation/Regulatory – ITEPA2003 s. 446NA

Employee-controlled, meaning

Legislation/Regulatory – ITEPA2003 s. 421H

Exclusions

Legislation/Regulatory – ITEPA2003 s. 421E-421G

Generally

Legislation/Regulatory – ITEPA2003 s. 446K

Information, duty to provide

Legislation/Regulatory – ITEPA2003 s. 421J, 421K, 421L

Market value, meaning

Legislation/Regulatory – ITEPA2003 s. 421

Negative amounts treated as nil

Legislation/Regulatory – ITEPA2003 s. 419

Non-commercial increases, charge on

Legislation/Regulatory – ITEPA2003 s. 446L-446N

Public offers

Legislation/Regulatory – FA2004 s. 89(1), (4), (5) ; ITEPA2003 s. 421F

Relevant period, meaning

Legislation/Regulatory – FA2004 s. 88(13) ; ITEPA2003 s. 446O

Replacement securities

Legislation/Regulatory – ITEPA2003 s. 421D

Reportable events

Legislation/Regulatory – ITEPA2003 s. 421K, 421L

Residence

Legislation/Regulatory – ITEPA2003 s. 421E

Securities, meaning

Legislation/Regulatory – F(No. 2)A2005 Sch. 2, para. 2(7), (8) ; ITEPA2003 s. 420

Valuation date

Legislation/Regulatory – FA2004 s. 88(13) ; ITEPA2003 s. 446O

Associated persons, meaning

Legislation/Regulatory – ITEPA2003 s. 421C

Awarded by unconnected company

Commentary – Dalby on Employee Share Schemes - Equity Reward for Private Companies 1.3.3

Capital gains tax

Increase in expenditure by reference to tax charged

Legislation/Regulatory – TCGA92 s. 119A

Options

Legislation/Regulatory – TCGA92 s. 149A

Restricted and convertible securities

Legislation/Regulatory – TCGA92 s. 149AA

Changes in interests

Legislation/Regulatory – ITEPA2003 s. 421D

Company share option plans

– see Company share option plans (CSOP)

Consideration

Generally

Legislation/Regulatory – ITEPA2003 s. 421I

Meaning

Legislation/Regulatory – ITEPA2003 s. 421A

Convertible securities

– see Convertible shares and securities

Corporation tax

Commentary – Dalby on Employee Share Schemes - Equity Reward for Private Companies ¶6

Directors

Commentary – Dalby on Employee Share Schemes - Equity Reward for Private Companies 1.3.1

Disposal for more than market value

Case Law – Gray's Timber Products Ltd v Revenue and Customs Commissioners. [2009] BTC 589 ; Grays Timber Products Ltd v Revenue and Customs Commissioners. [2010] BTC 112

Disposals of

Commentary – Dalby on Employee Share Schemes - Equity Reward for Private Companies ¶5

Disposals of securities for more than market value

Additional securities

Legislation/Regulatory – ITEPA2003 s. 421D

Amount treated as income

Legislation/Regulatory – ITEPA2003 s. 446Y

Associated persons, meaning

Legislation/Regulatory – ITEPA2003 s. 421C

Changes in interests

Legislation/Regulatory – ITEPA2003 s. 421D

Consideration

Legislation/Regulatory – ITEPA2003 s. 421I

Consideration, meaning

Legislation/Regulatory – ITEPA2003 s. 421A

Definitions

Legislation/Regulatory – ITEPA2003 s. 446Z

Employee-controlled, meaning

Legislation/Regulatory – ITEPA2003 s. 421H

Exclusions

Legislation/Regulatory – ITEPA2003 s. 421E-421G

Generally

Legislation/Regulatory – ITEPA2003 s. 446X

Information, duty to provide

Legislation/Regulatory – ITEPA2003 s. 421J, 421K, 421L

Market value, meaning

Legislation/Regulatory – ITEPA2003 s. 421

Negative amounts treated as nil

Legislation/Regulatory – ITEPA2003 s. 419

Public offers

Legislation/Regulatory – FA2004 s. 89(1), (4), (5) ; ITEPA2003 s. 421F

Replacement securities

Legislation/Regulatory – ITEPA2003 s. 421D

Reportable events

Legislation/Regulatory – ITEPA2003 s. 421K, 421L

Residence

Legislation/Regulatory – ITEPA2003 s. 421E

Securities, meaning

Legislation/Regulatory – F(No. 2)A2005 Sch. 2, para. 2(7), (8) ; ITEPA2003 s. 420

Employee shareholders

– see Employee shareholder shares

Employee-controlled, meaning

Legislation/Regulatory – ITEPA2003 s. 421H

Enterprise management incentives

– see Enterprise management incentives (EMIs)

Exclusions

Legislation/Regulatory – ITEPA2003 s. 421E-421G

Founders' shares

Commentary – Dalby on Employee Share Schemes - Equity Reward for Private Companies 1.5

General tax principle

Commentary – Dalby on Employee Share Schemes - Equity Reward for Private Companies 3.4.1

Generally

Commentary – Schwarz on Tax Treaties ¶19-350

Growth shares

Commentary – Dalby on Employee Share Schemes - Equity Reward for Private Companies 10.3.2

Information, duty to provide

Electronic communications

Legislation/Regulatory – DIRECTNS 4/4/07 ; SI 2007/792

Generally

Legislation/Regulatory – ITEPA2003 s. 421J, 421K, 421L

Market value, meaning

Legislation/Regulatory – ITEPA2003 s. 421

Negative amounts treated as nil

Legislation/Regulatory – ITEPA2003 s. 419

Options

Commentary – Dalby on Employee Share Schemes - Equity Reward for Private Companies 3.5.2 Dalby on Employee Share Schemes - Equity Reward for Private Companies 3.5.3

PAYE

Conversion of shares

Legislation/Regulatory – ITEPA2003 s. 699

HMRC Guidance – EIM11870 ; EIM12230 ; ERSM40110

Gains from securities options

Legislation/Regulatory – ITEPA2003 s. 70

Generally

Legislation/Regulatory – ITEPA2003 s. 698

HMRC Guidance – EIM11865 ; EIM11866 ; EIM11932 ; EIM12220 ; EIM12221 ; EIM12230 ; EIM12240 ; EIM12250 ; EIM12260 ; EIM12270 ; EIM12280 ; ERSM161030 ; ERSM161040 ; ERSM162820 ; ERSM170200 ; ERSM170700 ; ERSM40110 ; NIM06826 ; NIM06827 ; NIM06829 ; NIM06830 ; NIM06831

PAYE and NIC

Commentary – Dalby on Employee Share Schemes - Equity Reward for Private Companies ¶7

Post-acquisition benefits from securities

Amount of charge

Legislation/Regulatory – ITEPA2003 s. 448

HMRC Guidance – ERSM50500 ; ERSM90030

Chargeable gains

Legislation/Regulatory – TCGA92 s. 120

HMRC Guidance – CG17245 ; CG56321A ; CG56329 ; CG56339 ; CG56342 ; ERSM180030 ; LAM03710

Consideration, meaning

Legislation/Regulatory – ITEPA2003 s. 421A

Definitions

Legislation/Regulatory – ITEPA2003 s. 450

HMRC Guidance – ERSM30030 ; ERSM30040 ; ERSM60300

Exemption of benefits from charge

Legislation/Regulatory – ITEPA2003 s. 449

HMRC Guidance – ERSM100020 ; ERSM20100 ; ERSM20290 ; ERSM30030 ; ERSM50150 ; ERSM60140 ; ERSM90050 ; ERSM90230

Generally

Legislation/Regulatory – ITEPA2003 s. 447-450, Sch. 7, para. 54-61

HMRC Guidance – CG56328 ; ERSM161210 ; ERSM163010 ; ERSM180030 ; ERSM90030 ; ERSM90060 ; ERSM90200 ; ERSM90600

Increase in expenditure

Legislation/Regulatory – TCGA92 s. 120

Market value, meaning

Legislation/Regulatory – ITEPA2003 s. 421

Transitional provisions and savings

Legislation/Regulatory – ITEPA2003 Sch. 7, para. 54-61

Priority allocations

– see Shares and securities

Public offers

Legislation/Regulatory – FA2004 s. 89(1), (4), (5) ; ITEPA2003 s. 421F

Remittance basis

Associated employment performed in UK, limit of foreign securities income

Legislation/Regulatory – ITEPA2003 s. 41D

Effect of

Legislation/Regulatory – ITEPA2003 s. 41A

Foreign securities income, determination

Legislation/Regulatory – ITEPA2003 s. 41C

Just and reasonable apportionment, foreign securities income

Legislation/Regulatory – ITEPA2003 s. 41E

Relevant period

Legislation/Regulatory – ITEPA2003 s. 41B

Replacement securities

Legislation/Regulatory – ITEPA2003 s. 421D

Reportable events

Legislation/Regulatory – ITEPA2003 s. 421K, 421L

Reporting regime

Commentary – Dalby on Employee Share Schemes - Equity Reward for Private Companies ¶8 Dalby on Employee Share Schemes - Equity Reward for Private Companies 13.10.1

Research institution spin-out companies

– see Shares in research institution spin-out companies

Residence

Legislation/Regulatory – ITEPA2003 s. 421E, Sch. 7, para. 43A ; M03/08

Restricted securities

– see Restricted securities

Returns, electronic communications

Legislation/Regulatory – DIRECTNS 4/4/07 ; SI 2007/792

SAYE option schemes

– see SAYE option schemes

Scope of regime

Commentary – Dalby on Employee Share Schemes - Equity Reward for Private Companies 3.5.2

Securities, meaning

Legislation/Regulatory – F(No. 2)A2005 Sch. 2, para. 2(7), (8) ; ITEPA2003 s. 420

Share incentive plans

– see Share incentive plans (SIPs)

Spin-out companies

Commentary – Dalby on Employee Share Schemes - Equity Reward for Private Companies 4.5.1

Spouses

Commentary – Dalby on Employee Share Schemes - Equity Reward for Private Companies 1.3.3

Third party payments of money/transfer of assets

– see Employment income

Transitional provisions and savings

Legislation/Regulatory – ITEPA2003 Sch. 7, para. 25-27