So employees will be able to enter into an agreement with their (corporate) employers to give up certain employment rights in exchange for a free issue of shares with a market value of £2,000 (see S.27 growth and Infrastructure Bill).
So how do they get valued? What happens if some smart arse later established that the value was incorrect and they were only worth £1,999? Agreement nul and void? Employee gets their rights back?
What about the tax consequences?
The employee is receiving money's worth taxable under S.62 and there's no exemption, but presumably the company gets a CT deduction.
Assuming the shares are an RCA, am I right in thinking that there's no PAYE or NI and it's just reported on from 42 and the employee's own Tax Return.
What happens if HMRC then dispute the valuation?
Is it possible to agree valuations with HMRC up front?
- Telephone call from "Xero" 410 5
- Error on SA Tax Return 106 3
- Increasing the personal allowance: A top priority? 1,166 46
- dividend 140 10
- Purchase of shares in a Limited Company 107 5
- Repairs or Improvement? 250 5
- Credit Card Payment - What are we required to do? 166 3
- Irish Taxation 135 4
- Now the phishers have baited their hooks with SAGE 304 2
- Self assessment tax arrears 510 6
- Drector renting room to company 89 1
- Off site storage 148 5
- Is Accountancy Becoming like an Insurance Policy 599 6
- Anyone know about Cloud-Based Practice Management Software? 247 7
- Industrial & Provident Societies 348 1
- Advertising with Hibu nee Yell (Yellow Pages) 235 3
- Auto-enrolment - Fees 326 4
- Self assesment losses 322 8
- RTI and s18 ITEPA 173 3
- Garden studio - tax and VAT deductible? 184 1
- Xtuple 563
- Qtac payroll for bureau 385
- Confused - Professional Association a Mutual trader, or not? 341
- Domain name sale and limited company 232
- Italian friend wants to set up a UK company to reduce taxes 211
- Director legal fees in loose connection to the company 207
- Investment 204
- Multiple bodies and practicing certificates 180
- Tax on damages received 179
- Temporary non residence and CGT on non-UK asset 149