Minutes of the annual Technical Meeting of the Share Plan Lawyers with HMRC on 11 May 1994

Minutes of a technical meeting with the Inland Revenue on 11 May 1994 regarding:

  • whether any of the following terms of an option: (1) first exercise date; (2) number of shares under option; and (3) subscription price; may be varied in line with performance conditions attached to the option;
  • whether the waiver of performance targets in particular circumstances would be accepted by the Inland Revenue;
  • whether it is permissable for a company to have a “call” option against shares acquired pursuant to the exercise of an approved option if the exercise of the “call” option is conditional on the company exercising the equivalent “call” options against all other shareholders at the same time;
  • effect of payments by executives to free standing AVCs on the definition of “relevant emoluments” for the purposes of paragraph 28, Schedule 9, Income & Corporation Taxes Act 1988;
  • whether the issue of shares to a nominee is permitted where the rules of the scheme only refer to the issue of shares to the executive;
  • financing of the exercise of an option and issues arising in relation of transfer of shares to spouse following exercise;
  • rollover of options granted under a savings related share option scheme – limitation of 6 month period for exercise of options;
  • Inland Revenue Shares Valuation policy on adjustment of options on variation of capital;
  • whether an approved scheme may include provisions to cover particular circumstances in the event of the scheme losing approval;
  • clarifications regarding reporting requirements in relation to approved options;
  • rollover of options granted by a trustee;
  • whether the allocation of fractions of shares is permitted under a profit sharing scheme;
  • discrimination between full time and part time employees – impact of the Ex parte Equal Opportunities Commissioncase on: (1) all employee schemes; (2) Executive Share Option Schemes; and (3) statutory Employee Share Ownership Trusts; and
  • operation of employee share schemes in connection with a flotation.
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Keywords: CGT, Demerger, HMRC compliant plans, IPO, IR16, Leavers, PAYE, Performance condition, Profit Sharing Scheme, Ratchets, Remuneration Committee, Rights issue, Rollover, Sex discrimination, Shareholder approval
Categories: Document archive, HMRC meetings