Minutes of a meeting with the Inland Revenue on 2 December 2003

Minutes of a meeting with the Inland Revenue on 2 December 2003 regarding the following:

Schedule 22 – Finance Act 2003:

  • time of acquisition of shares;
  • earn-outs;
  • matching share award plans;
  • meaning of “securities option”; and
  • BVCA/IR joint memorandum on managers’ equity.
  • Schedule 23 – Finance Act 2003 – Relief where relevant shares in consortium company.

Inland Revenue Approved Schemes:

  • PAYE/NIC after loss of approval of CSOP option;
  • CSOP and approved SAYE option schemes – irrevocable undertakings (scheduled for further discussion with the Inland Revenue);
  • Ancillary documents for all approved schemes other than Share Incentive Plans; and
  • Share Incentive Plans – maximum deduction from salary.

Unapproved Options:

  • Incidence on PAYE/NIC where transfer of business;
  • Assignment or release of options granted before6 April 1999;
  • NIC on rollover of options where original option granted before6 April 1999.

A number of the questions raised at this meeting were deferred for consideration at a later date. The Schedule to the minutes sets out the text of these questions. These questions dealt with the following matters:

  • Schedule 22, Finance Act 2003 – application of Part 7. ITEPA to flowering shares, subscriber shares, redeemable shares, shares subject to forfeiture, additional shares, and dilution from securities option;
  • Schedule 23, Finance Act 2003 – time of acquisition for shares acquired pursuant to options and time of acquisition where shares acquired otherwise than pursuant to options; and
  • Inland Revenue Approved Schemes – CSOP and approved SAYE option schemes – irrevocable undertakings.
?attachment_id=765 download View | Download
Keywords: Business sale, BVCA Memorandum of Understanding, Cash bonus, Cash cancellation, Change of Control, Corporation tax, Corporation tax deduction, CSOP, EBT, Employment law, Employment-related security, Flowering shares, Forfeiture, HMRC compliant plans, Income tax, ITEPA 2003, NICs, PAYE, Performance condition, Restricted securities, Rollover, SAYE, Securities option, Share valuation, SIP, Takeover, Taper relief, USA
Categories: Document archive, HMRC meetings