Corporation tax deductions on employee share option exercises – consider the method of settlement

HMRC’s employment related securities bulletin for October 2019 has a section on annual reporting of net settled share awards. The deadline employers’ annual reporting concerning employment related securities is 6 July following the end of the income tax year. Whether...

Upper Tribunal comments on unpaid trading expenses cast doubt on HMRC income tax guidance on interest free loans under FRS 102

In confirming the First tier Tribunal (FTT) decision in NCL Investments Ltd and Smith & Williamson Corporate Services Limited the Upper Tribunal (UT) made comments that call into question HMRC’s guidance on the application of FRS102 for income tax purposes...

Corporation tax deduction on option exercises impacted by method of settling employment tax

We have become aware of a developing issue regarding the CT deduction on share option exercises, which could mean that some companies have over-claimed this relief.  This note only relates to CT and does not impact the income tax treatment...