Policy News Journal - 2012-13

 Notification requirements of trustees of a SIP  SIP – cessation of “association” of companies on a demerger  SIP – meaning of "the same provision" in pre-emption conditions  Changes to share schemes approvals process  Budget 2012 and Consultations  Share Scheme Statistics – User Survey

Bulletin No 1 - May 2012

REVISED FAQS FOR SHARE-BASED PAYMENTS TO AN EMPLOYEE AFTER THEY HAVE LEFT

25 June 2012

For some time now HMRC has recognised that their previous guidance was not practical in some circumstances. HMRC has discussed the issues with various stakeholders and as a result this revised guidance for employers providing share-based payments to former employees has been published. This guidance takes precedence over the previous version , however HMRC acknowledge that some 2012-13 payments will already have been made or arranged according to the original guidance. You can view the full guidance notes here.

CONSULTATION ON EMPLOYEE SHARE SCHEMES

4 July 2012

This consultation follows the Office of Tax Simplification's report on tax advantaged employee share schemes.

The government has accepted some of the OTS’s recommendations in principle and is seeking further views and evidence to inform the development of detailed proposals in relation to:

 a new approval process for SIP, SAYE and CSOP;  prescriptive rules regarding operation of schemes; and

 rules in SIP, SAYE and CSOP that prohibit scheme features which are not essential, or reasonably incidental, for the provision of shares or share options to employees.

There are also a number of the OTS’s recommendations which the government is seeking further views and evidence on before deciding how to proceed. They are in relation to:

 provisions concerning retirement for SIP, SAYE and CSOP;  cash takeovers;  uncapped PAYE and NICs liability on cash takeovers (SIP);  SIP, SAYE and CSOP material interest rules;  restrictions on shares that can be used in SIP, SAYE and CSOP;  removal of redundant legislation for SIP;  the accumulation period for SIP partnership shares;  the operation of PAYE for SIP shares that leave a plan early;  SIP dividend reinvestment;  SAYE savings periods;  the rules on non PAYE contributions under SAYE; and  the exercise period for EMI share options following a disqualifying event.

CIPP Policy News Journal

12/04/2013, Page 153 of 362

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