Sleepless in securities

Are you losing sleep over the employment-related securities legislation and owner-managed companies? If the answer is 'no' are you sure you understand it ...?

Most people will by now have filed Form 42 for 2005-06 and practitioners will be delighted that they do not have to consider the topic of 'employment-related securities' for almost another year. In fact I will wager that a large percentage of practitioners do not even consider that clients running owner-managed businesses own any such things in any case.

It is hardly surprising that such views might prevail. Reading through the guidance notes in Form 42 your average person may think that if a share issue is specifically not reportable then the shares themselves are not going to be affected by ITEPA 2003 Pt 7 'Employment income: income and exemptions relating to securities'. That is a wild assumption to make.

This...