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Key points
- The employment-related securities legislation can be found in ITEPA 2003 Part 7.
- There are four main elections available within the legislation – the most common is the s 431(1) election.
- A s 431(1) election is not always necessary or even possible in the case of some share transactions.
- Where the shares held by an employee are restricted securities a chargeable event may occur (s 427(3)).
- In the event of a disposal of shares despite this being a capital disposal a proportion of the gain may be charged to income tax.
- A s 431(1) election can provide significant tax savings in the long run despite a potentially higher upfront cost on acquisition.
At its core the employment-related securities (ERS) regime is a set of anti-avoidance provisions designed to ensure that employees (past present or future) are subject to income tax on the issue...
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