Q&As

Two employees have been issued shares and entered into a section 431 election respectively. The date of the signatures is the date the shares are shown at Companies House as being issued. However, where the form requires the date the shares were acquired by the employee, a date has not been inserted. Does this invalidate the section 431 election?

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Published on LexisPSL on 14/01/2020

The following Tax Q&A provides comprehensive and up to date legal information covering:

  • Two employees have been issued shares and entered into a section 431 election respectively. The date of the signatures is the date the shares are shown at Companies House as being issued. However, where the form requires the date the shares were acquired by the employee, a date has not been inserted. Does this invalidate the section 431 election?

Two employees have been issued shares and entered into a section 431 election respectively. The date of the signatures is the date the shares are shown at Companies House as being issued. However, where the form requires the date the shares were acquired by the employee, a date has not been inserted. Does this invalidate the section 431 election?

An election under section 431 of Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) only applies to employment-related securities that are restricted securities or a restricted interest in securities.

If, therefore, securities are not restricted securities (or a restricted interest in securities), a section 431 election is not relevant.

Where employment-related securities are restricted securities or a restricted interest in securities, a section 431 election must be made by agreement by the employer and the employee:

  1. in a form approved by HMRC,

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