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


Articles from this Author

20th March, 2018
Beneficial loans

20th March, 2018
IR35 consultation

20th March, 2018
Tax codes

25th October, 2017
R&D changes see 22% increase in claims by SMEs

Contact Business Service Partners

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


Become an #ACA #Chartered #Accountant with @mercerhole - find out more here:

Spring Statement 2018 – VAT initiatives Richard Collier's latest blog post #VAT #SpringStatement



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

Click here to follow us on LinkedIn