Alex Spencer reviews the employment-related securities provisions and considers practical points and difficulties for advisers grappling with this complicated part of the income tax legislation.
The employment-related securities (ERS) legislation (in ITEPA 2003, Pt 7) possesses the unfortunate characteristics of being both complicated and, for the unwary, of unexpectedly wide application. Advisers must have the legislation at the front of their minds when faced with a scenario in which a person receives shares or other securities in a company for no consideration or for consideration less than market value and has held, holds or may hold an office or employment with that company.
It is generally well understood that if the ERS legislation does not apply, a charge may arise on the receipt of shares for no or less than market value consideration, as
