Minutes of a technical meeting with the Inland Revenue on 29 November 2004 regarding the following:
- the application of Chapter 3C, Part 7, ITEPA to shares acquired under Inland Revenue approved schemes;
- the taxation of SAYE options once the scheme has ceased to be approved;
- amending approved options without the relevant scheme losing approval which includes a discussion of reconciling CIR v Eurocopy with the decision in CIR v Reed International plc;
- how the system for Inland Revenue approval numbers is intended to operate;
- the recovery of employer’s Class 1 NICs on benefits paid by an employee benefit trust or other third party;
- the recovery of employer’s NICs on “notional payments”;
- the position regarding NICs liabilities following the transfer of a business;
- the tax position on the exercise of an undervalue EMI option;
- the availability of deductions in relation to EMI options;
- UK/UK transfer pricing guidance and applicability of these rules to options granted before 1 April 2004;
- availability of relief under Schedule 23, Finance Act 2003 on sale of business; and
- scope of reporting requirements under Schedule 22 and what constitutes a reportable event.
The following additional administrative points were discussed at this meeting and are summarised in the minutes: (1) the Inland Revenue’s move to new offices; and (2) the updating of the Inland Revenue’s website, in particular the manuals.