Minutes of the annual Technical Meeting of the Share Plans Lawyers with HMRC on 13 November 1991

Minutes of a technical meeting with the Inland Revenue held on 13 November 1991 regarding:

  • whether on the grant of options following the sale of a business or group re-organisation, the Inland Revenue will treat the emoluments of the previous office or employment as “relevant emoluments” for the purposes of Schedule 9, paragraph 28 of the Income & Corporation Taxes Act 1988;
  • what steps a company must take to comply with the notification requirement of paragraphs 29(4)(b) and (c), Schedule 9, Income & Corporation Taxes Act 1988;
  • whether it is necessary to specify in the rules of an approved executive share option scheme, the method by which it is intended to notify employees who are eligible to participate in an all employee scheme of the existence of that scheme;
  • the position regarding subsisting options under a scheme where Inland Revenue approval of the scheme is withdrawn;
  • whether it is possible to substitute the term “specified age” for “pensionable age” in savings related share option schemes and profit sharing schemes approved before 25 July 1991;
  • whether an approved profit sharing scheme may permit an participant to direct the transfer of the legal ownership of his scheme shares to a manager of a SCP rather than to himself;
  • whether an approved savings related share option scheme may permit the allotment and issue or transfer of shares to a manager of an SCP rather than the optionholder;
  • what the Inland Revenue practice is where amendments are made to an Inland Revenue approved scheme without prior Inland Revenue consent, where the rules of such scheme do not make Inland Revenue approval a pre-condition of an effective alteration to the rules of the scheme;
  • whether a shareholders agreement regarding voting would be regarded as a restriction on scheme shares for the purposes of Schedule 9, Income & Corporation Taxes Act 1988;
  • whether an agreement entered into by optionholders under which they have the right to sell their scheme shares back to the company would render the shares “redeemable”;
  • whether there will be no capital gains tax liability on the sale of shares following the exercise of an option if there is no undue delay in selling the shares;
  • how many qualifying employee share ownership trusts (QUESTs) had received clearance from the Inland Revenue at the date of the meeting; and
  • general comments on whether newly published booklets IR95-100 contained any changes to practice or policy and on the Eurocopy case.
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Keywords: Age discrimination, Amending Plan Rules, CGT, Company reconstruction, Death, Discretion, Forfeiture, HMRC compliant plans, Income tax, IR16, PAYE, Profit Sharing Scheme, Restricted securities, Retirement, SAYE, Sex discrimination
Categories: Document archive, HMRC meetings