 |
 |
|
|
Enter details of shares (or interests in shares) received from employment cheaply or free of charge. If the shares are acquired for less than their market value and the benefit is not otherwise chargeable to income tax the undervalue is treated as a loan. Receipt of partly-paid shares is treated as an interest free loan. Do NOT enter details where the employer has enabled the sale of shares at more than their market value and the benefit has been included as a benefit-in-kind on the P11D - HS216
If shares (or an interest in shares) are acquired by reason of employment there may be a post acquisition charge - IR217 - when:
Rights or restrictions attached to any shares are altered;
Shares in certain subsidiary companies are kept for seven years or if sold earlier, when the shares are sold and they have increased in value since their acquisition;
'Special benefits' are received by virtue of the ownership of the shares.
Enter the details of the shares acquired:
Company - enter the name of the provider or click the magnifying glass to select from a list of the clients employers.
Class of share - enter the class of the share held for example, 10p ordinary.
Unquoted shares? [Y/N] - this is for information purposes only and does not affect the final taxable amount.
Reason for charge - click the magnifying glass to select a reason from the following list
Select a reason for the charge:
Received from employment.
Benefit.
Or post acquisition charge.
Number of shares - enter number of shares acquired.
Amount paid PER SHARE - enter the amount paid per share, this information is not required for a post acquisition charge.
Market value PER SHARE when acquired - enter the market value per share.
Taxable amount - the taxable amount is calculated automatically when the shares are received from the employment: this is calculated as follows:
(market value - amount paid) x number of shares
Where a charge arises from a benefit or a post-acquisition charge the amount must be entered manually.
The Inland Revenue have help sheets to assist with the calculation. They are IR216 for benefits and IR217 for post-acquisition charges.
Where shares are received from employment, the amount may already have been included in the P60 amount from the employer. An extra pop-up window will be displayed asking "included in P60 or P45? (Y/N)".
If tax has been deducted from a share option, we recommend that the amount is entered as tax paid on the employment income to appear in box 1.11 on the employment pages of the return. Also make a note in the additional information box to explain this entry.
Where there is a post-acquisition charge, an additional screen will pop up, enter details of the charge.
Shares qualify for employee shareholders status - select this option if the employee has received these shares fully paid up as part of an agrement to become an employee shareholder. Selecting this option will ensure the first £2,000 of shares are free from tax and NIC.
Payment deemed as made PER SHARE - this field will be automatically calculated as follows:
2,000 / (number of shares x market value)
Taxable amount - this field will be automatically calculated as follows:
(market value - payment deemed as made) x number of shares
