A client is gifting 5% of their shares in their private company to a long standing unconnected employee.
Client will register a scheme for employment related securities. I have a valuation for the transfer on which income tax falls due, however as the shares aren't RCAs, then this is not collected through PAYE.
Please can someone assist with the following:
- What paperwork does the employer give the employee so they include the gift on their tax return?
- Does the employer need to get involved in the s431 election, if required?
- When the ERS form is completed at the end of the year, I assume I just include the value and that no PAYE was deducted? Since obviously I won't know if tax has been/will be paid by the employee since my understanding is that it is paid through self-assessment.
Thanks and surprised I couldn't find any posts on this but maybe I am missing something really obvious...