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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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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?

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By Wilson Philips
14th Jul 2019 23:24

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.

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