Unapproved share schemes | Croner-i Tax and Accounting

Acquisition at less than market value

Basic charge

HMRC Guidance – ERSM20500

Case Law – (1) EDE (H.M. INSPECTOR OF TAXES) v. WILSON (2) EDE (H.M. INSPECTOR OF TAXES) v. CORNWELL ; WEIGHT (H.M. INSPECTOR OF TAXES) v. SALMON

Generally

Commentary – Tax Reporter ¶476-600

Legislation

Commentary – Tax Reporter ¶476-600

Non-residents

Commentary – Tax Reporter ¶476-700–Tax Reporter ¶476-740

HMRC Guidance – ERSM70120

Anti-avoidance

Commentary – Tax Reporter ¶472-220

HMRC Guidance – ERSM20120

Artificially depressed market value

Acquisition, charge on

Commentary – Tax Reporter ¶476-200

Adjustment of market value

Commentary – Tax Reporter ¶476-260–Tax Reporter ¶476-320

Conditional interests, charge on

Commentary – Tax Reporter ¶476-260

Consideration for entitlement to convert, charge on

Commentary – Tax Reporter ¶476-280

Conversion, charge on

Commentary – Tax Reporter ¶476-300

Generally

Commentary – Tax Reporter ¶476-200

Interaction with other provisions

Commentary – Tax Reporter ¶476-340

Non-residents

Commentary – Tax Reporter ¶476-400

Residence

Commentary – Tax Reporter ¶476-400

Restricted securities, charge on

Commentary – Tax Reporter ¶476-240

Artificially enhanced market value

Alphabet shares

Commentary – Tax Reporter ¶476-080

Charge on non-commercial increases

Commentary – Tax Reporter ¶476-020

Generally

Commentary – Tax Reporter ¶476-000

Interaction with other provisions

Commentary – Tax Reporter ¶476-100

HMRC Guidance – ERSM60030

Legislation

Commentary – Tax Reporter ¶476-000

Restriction during relevant period

Commentary – Tax Reporter ¶476-060

Restriction on valuation date

Commentary – Tax Reporter ¶476-040

Associated persons

Commentary – Tax Reporter ¶472-060

HMRC Guidance – ERSM20240

Case law

Commentary – Tax Reporter ¶472-200

Consideration

Commentary – Tax Reporter ¶472-080

Convertible securities

Acquisition, charge on

Commentary – Tax Reporter ¶475-560

Calculation of later charge

Commentary – Tax Reporter ¶475-600

Disability, exclusion from charge

Commentary – Tax Reporter ¶475-640

Employee-controlled companies

Commentary – Tax Reporter ¶475-640

Exclusions from charge

Commentary – Tax Reporter ¶475-640

Flowering or blossoming shares

Commentary – Tax Reporter ¶475-620

Generally

Commentary – Tax Reporter ¶475-500

Later chargeable event, charge on

Commentary – Tax Reporter ¶475-580

Legislation

Commentary – Tax Reporter ¶475-500

Non-residents

Commentary – Tax Reporter ¶475-700

Residence

Commentary – Tax Reporter ¶475-700

Corporation tax relief

Commentary – Tax Reporter ¶482-050

Disapplication of legislation

Commentary – Tax Reporter ¶472-260

Disposals for more than market value

Generally

Commentary – Tax Reporter ¶476-800

HMRC Guidance – ERSM80130

Non-residents

Commentary – Tax Reporter ¶476-860

Residence

Commentary – Tax Reporter ¶476-860

Double taxation

Commentary – Tax Reporter ¶472-240

HMRC Guidance – ERSM20220

Earn-outs

– see Earn-outs

Employment-related securities

Commentary – Tax Reporter ¶472-040

Generally

Commentary – Tax Reporter ¶464-180

Legislation

Commentary – Tax Reporter ¶472-200

Market value

Commentary – Tax Reporter ¶472-020

National Insurance contributions

Commentary – Tax Reporter ¶480-980 ; Tax Reporter ¶482-000

Non-residents

Commentary – Tax Reporter ¶473-000

Partly-paid shares

Caveat emptor

Commentary – Tax Reporter ¶478-020

Charge on acquisition

Commentary – Tax Reporter ¶478-100

Corporation tax relief

Commentary – Tax Reporter ¶478-200

Generally

Commentary – Tax Reporter ¶464-160 ; Tax Reporter ¶478-000 ; Tax Reporter ¶478-020

Interaction with other legislation

Commentary – Tax Reporter ¶478-220

Loans

Commentary – Tax Reporter ¶478-120

Notional loan

Commentary – Tax Reporter ¶478-120

Risks involved

Commentary – Tax Reporter ¶478-220

Post-acquisition benefits from securities

Application of rules

Commentary – Tax Reporter ¶477-500

Exception from charge

Commentary – Tax Reporter ¶477-520

Non-residents

Commentary – Tax Reporter ¶477-600

Ratchets

Commentary – Tax Reporter ¶477-540

HMRC Guidance – ERSM30520

Residence

Commentary – Tax Reporter ¶477-600

Post-acquisition benefits from securities amount of charge

Commentary – Tax Reporter ¶477-500

Quoted companies

Commentary – Tax Reporter ¶472-020

Ratchets

Commentary – Tax Reporter ¶477-540 ; Tax Reporter ¶478-600–Tax Reporter ¶478-640

HMRC Guidance – ERSM30520 ; ERSM90500

Replacement securities

Commentary – Tax Reporter ¶472-280

Residence and non-residents

Arrival and departure

Commentary – Tax Reporter ¶480-900–Tax Reporter ¶480-940

HMRC Guidance – ERSM170700

Double taxation treaties

Commentary – Tax Reporter ¶480-800

Foreign securities income

Commentary – Tax Reporter ¶480-740

General earnings and specific employment income, distinction between

Commentary – Tax Reporter ¶480-540

HMRC Guidance – ERSM161320

Case Law – Abbott v. Philbin (H.M. Inspector of Taxes)

Generally

Commentary – Tax Reporter ¶472-300 ; Tax Reporter ¶473-000 ; Tax Reporter ¶480-500 ; Tax Reporter ¶480-520

HMRC Guidance – CG59514 ; CTM60310 ; ERSM220060 ; ERSM80130

National Insurance contributions

Commentary – Tax Reporter ¶480-940 ; Tax Reporter ¶480-980

HMRC Guidance – ERSM170700

PAYE

Commentary – Tax Reporter ¶480-980

Split-year treatment

Commentary – Tax Reporter ¶480-900

Taxable specific income

Commentary – Tax Reporter ¶480-700–Tax Reporter ¶480-740

Year of arrival/departure

Commentary – Tax Reporter ¶480-900

Restricted securities

Acquisition of shares up to 15 April 2003

Commentary – Tax Reporter ¶475-100–Tax Reporter ¶475-180

Acquisition, charge on

Commentary – Tax Reporter ¶474-700

Artificially depressed market value

Commentary – Tax Reporter ¶476-220 ; Tax Reporter ¶476-240

Calculation of charge

Commentary – Tax Reporter ¶474-760

Chargeable events

Commentary – Tax Reporter ¶474-740

Convertible

Commentary – Tax Reporter ¶474-800

Disapplication of legislation, election out of deferrable regime

Commentary – Tax Reporter ¶474-920

Disposals by employees

Commentary – Tax Reporter ¶474-770

Elections

Commentary – Tax Reporter ¶474-700 ; Tax Reporter ¶474-900

Exceptions

Commentary – Tax Reporter ¶474-620

Exclusions from charge

Commentary – Tax Reporter ¶474-840

Forfeitable securities, election out of deferral regime

Commentary – Tax Reporter ¶474-940

Generally

Commentary – Tax Reporter ¶474-500

Identification

Commentary – Tax Reporter ¶474-640

Long-term incentive plans

Commentary – Tax Reporter ¶474-520

HMRC Guidance – ERSM220060

Losses, hidden charge on

Commentary – Tax Reporter ¶474-780

Meaning

Commentary – Tax Reporter ¶474-600

Non-residents

Commentary – Tax Reporter ¶475-200

HMRC Guidance – ERSM161320

PAYE

Commentary – Tax Reporter ¶474-700 ; Tax Reporter ¶474-770

Post-acquisition events, charge to tax

Commentary – Tax Reporter ¶474-720

Residence

Commentary – Tax Reporter ¶475-200

HMRC Guidance – ERSM161320

Two separate restrictions

Commentary – Tax Reporter ¶474-820

Valuations

Commentary – Tax Reporter ¶474-980

Review by Office of Tax Simplification

Commentary – Tax Reporter ¶472-400

Securities, meaning

Commentary – Tax Reporter ¶472-000

Taxed securities options

Assignment or release of option

Commentary – Tax Reporter ¶472-780

Associated person, meaning

Commentary – Tax Reporter ¶472-760

Benefit in kind charge

Commentary – Tax Reporter ¶472-580

Chargeable events

Commentary – Tax Reporter ¶472-700 ; Tax Reporter ¶472-760

Corporation tax relief

Commentary – Tax Reporter ¶472-500 ; Tax Reporter ¶472-600

Date of exercise of option, importance of

Commentary – Tax Reporter ¶472-560

Employee's residence status

Commentary – Tax Reporter ¶472-540

Employment-related securities option

Commentary – Tax Reporter ¶472-520

HMRC Guidance – ERSM110015

Exchange of options

Commentary – Tax Reporter ¶472-860

Exercise of option

Commentary – Tax Reporter ¶472-760

Generally

Commentary – Tax Reporter ¶472-500

Grant of option

Commentary – Tax Reporter ¶472-720

Market value

Commentary – Tax Reporter ¶472-820

National Insurance contributions

Commentary – Tax Reporter ¶472-500

Non-residents

Commentary – Tax Reporter ¶473-000

PAYE income

Commentary – Tax Reporter ¶472-500 ; Tax Reporter ¶472-580

Residence

Commentary – Tax Reporter ¶472-540 ; Tax Reporter ¶473-000

Sale of securities acquired through option

Commentary – Tax Reporter ¶472-820

Vesting of an option

Commentary – Tax Reporter ¶472-740

Underwater options

Commentary – Tax Reporter ¶480-000

Unquoted shares and securities

Commentary – Tax Reporter ¶472-020