London: +44 (0)20 7236 2601
St Albans: +44 (0)1727 869141
Rickmansworth: +44 (0) 1923 771010
Milton Keynes: +44 (0)1908 605552

Employment Related Securities – family exemption

Where an employee or director receives shares in the company in which he works at less than market value he has to pay income tax on the discount.  There is an exemption from the tax charge where shares are acquired for family reasons.

However, HMRC has changed its guidance on the exemption.  Originally it was accepted that the exemption could apply to shares issued by a company controlled by an individual or family where they procured the issue of shares.

This concession has disappeared from the updated guidance.  Now, say, if a parent wishes to give shares to a child as part of succession planning, he has to do this by way of gift.  If the shares are issued by the company they are not within the exemption.
 

 

 

Date: 17th March, 2014
Author: Cathy Corns

SHARE THIS

Articles from this Author

Contact Business Service Partners

Choose from the drop down menu below to select a Partner to contact.

Tweet

Mercer & Hole’s @GudgionJa progress in @CelebJustDance - Not much longer to Waite now….. bit.ly/2gqZOZq @MKDonsSET

Mercer & Hole’s Michael Lapham impresses at the @MoneyMgmtMag Financial Planner Awards bit.ly/2yw3Ieetwitter.com/i/web/status/9…

Follow

LinkedIn

For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole

Click here to follow us on LinkedIn