A6.965 Share arrangements

A6.965 Share arrangements

The tax treatment of shares and options is complex and mistakes are often made, including failure to complete the appropriate return (such as Form 42) and account for tax and National Insurance on a particular event1

The valuation of the share and deciding the type of share (for example is it a restricted share) are often key to the establishment of the tax and National Insurance treatment.

Some transactions also give rise to PAYE liabilities, such as acquisitions of readily convertible assets (quoted shares). If employers make mistakes then they will be responsible for National Insurance

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