This chapter outlines the procedures for dealing with requests
for the valuation of employment – related securities for
income tax purposes.
The instructions in the Employment Related Securities Manual
(ERSM) take precedence on all technical, as opposed to valuation
points.
The Schedule E legislation was consolidated in 2003 by the
Income Tax (Earnings and Pensions) Act 2003 (ITEPA). However,
almost immediately, Schedule 22 Finance Act 2003 introduced a new
regime for securities (which includes shares and options over
securities) that are used to remunerate employees, including
directors.
The ‘normal rules’ charge from Schedule E is
preserved in Part 3 Chapter 1 of ITEPA at section 62.
However, the other familiar Schedule E charges have been
replaced with the new regime at Part 7 Chapters 1 – 5
ITEPA.
| Additional Guidance: SVM150000 |
