A client company was set up in 2018 after transferring sole trader business into a limited company; the sole trader acquired 1 share in the company and also became a director. The Director's partner (not married but live together) takes care of day to day operations and has been a director from the outset but didn't have a share. The company now wants to issue a share to this person at par value. The question is, does this issue of a share come under the Employment Related Securities rules or is it exempt by way of the 'personal relationship' exemption? Also, is it reportable on Form 42?
14th Jul 2019
Employment Related Securities and directors
Does the issue of a share to a director give rise to a liability under ERS?
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If the share is issued by the company the exclusion does not (according to HMRC) apply. The solution is to sub-divide the existing share and the husband then gift half.