Share Scheme Manual - SSM10.5

TPI: information from Employee Share Schemes Unit

Where information has been provided by the company about shares acquired or share options exercised and the transaction gives rise to income tax liability, the information is sent to the network office by the Employee Share Schemes Unit. See SSM2.93 for details.

It should be possible to reconcile the information from the employers return, or otherthird party information (TPI) with the return made on the share scheme pages.

Example

Paul exercises a share option under an approved share option scheme, but because the exercise took place only two years from the date of grant, he is not entitled to income tax relief on the exercise. The company return to the Employee Share Schemes Unit shows the exercise date the number of shares acquired and the market value of the shares on the date of exercise, and the exercise price.

Number of shares 1000
Date of exercise 13 November 1999
MV of shares £2.33 per share
(listed on the London Stock Exchange)
Exercise price £1.20 per share

This information is sent to the network office by the Employee Share Schemes Unit.

The share option gain is £1.13 per share, a total of £1130. As the shares were obtained under an approved share option scheme, PAYE is not due and there is no NIC.

The SA share scheme pages should show:

Page S2 completed at Box 2.32 and 2.33. The Exercise column of boxes 2.34, to 2.40 should also be completed.

On Page S1 the following boxes should be completed: Either 2.1 and 2.3 or 2.7 and 2.9.

The information given at boxes 2.34 to 2.40 in the Exercise column should agree with the information provided by Employee Share Schemes Unit, and the Taxable amount at box 2.3 (or 2.9), should be £1130.

If the information provided by Employee Share Schemes Unit and the SA return agree then no further action is needed.