Tax and Reporting Implications of Employment Related Securities (ERS)

Understand the detailed technical guidance on the tax implications of employee share schemes & option schemes and learn how to apply them.

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A half-day ERS online course presented in a virtual class from 9:30am to 1:00pm UK time

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Download: Course Outline

Introduction to Share Awards

Training begins by looking at the meaning of employment-related securities
Phantom share awards
Scope of legislation (ITEPA)
Exception – family transactions

Basic Principles

Employment related securities training covers income tax
National insurance
Capital gains tax on share issued to employee’s awards

Restricted Securities

Exceptions to normal tax rules
Tax charges arising when restrictions are removed
Elections that can vary the normal tax rules

Convertible Securities

Normal tax rules
Exception
Calculations

Shares Artificially Suppressed in Value

Charge on acquisition

Shares Artificially Enhanced in Value

De minimis exception
Charging rules

Shares Acquired at Less Than Market Value (If Not Caught by Items Above)

Amounts treated as employment income

Securities Disposed of for More Than Market Value

Post-Acquisition Benefits Received Concerning Employment-Related Securities

Notional Loans

When they arise
Taxable amount
Example
Discharge of loan

Unapproved Share Options

Tax charge on exercise

Approved Share Schemes (Sharesave, CSOPs, EMI, SIPs)

Conditions
Tax charges

Internationally Mobile Employees

The importance of residence for tax charges
Calculation of chargeable UK income from employment share schemes reporting
Recent case law decisions

Using Share Awards in the Current Environment – Trading Salary for Shares

Annual Employment Related Securities Reporting of Share Schemes

Employment Related Securities Course Case Studies

Calculations with restricted securities
Effect of s431 election
Effect of s430 election
Calculations with convertible securities
When notional loans arise and the consequent tax charges
Notional loans when the shares are disposed of
Share options for internationally mobile employees (foreign service income and taxable share income) conclude ERS online training

At Redcliffe Training, our Employment Related Securities course is delivered by a UK Chartered Accountant and Chartered Tax Advisor. Our specialist won the John Wood Medal for the best paper on business taxation at the November 1995 CIOT sitting. Previously, as Director of Finance and Taxation Programmes at BPP Professional Education, he has delivered IFRS, US GAAP, UK Tax, and VAT to many organisations worldwide since 1992.

Our trainer has particular experience in delivering bespoke IFRS and US GAAP training programmes to multinationals in financial services, transport and energy sectors and delivering UK tax and VAT update programmes to accounting and law firms.

Employment related securities training is delivered with passion and the enthusiasm of the course leader ensures participants enjoy their learning experience whilst gaining knowledge through engagement. Attendees are encouraged to ask questions and discuss practical implications throughout sessions.

This specialist also provides consultancy services to companies and accounting firms, including provision of tax and VAT advice, reviewing accounting policy manuals and advising on accounting treatments of various transactions.

This ERS online course gives you a clear understanding of the specific guidance, including exceptions applicable to rules.
Identify when income tax and national insurance charges arise in connection with employment-related securities.
Identify what elections can be made to vary the normal tax treatment and in what circumstances this is beneficial or disadvantageous.
Understand conditions that must be met for a scheme to be ‘tax-advantaged’, including Sharesave schemes tax, Company Share Option Plans, Enterprise Management Incentive options and Share Incentive Plans.
Identify aspects of each scheme the company operates that are to be reported in the ERS annual return share schemes.

Redcliffe’s employment related securities training is highly practical and includes multiple examples to assist with understanding rules.
Sessions are presented by an independent training professional and can include a completely independent look at issues raised.
This course encourages participation allowing all questions and clarifications for consideration.
Training remains current and relevant to 2025.

ERS online training is a ‘must know’ for professionals dealing with the tax compliance of individuals in receipt of ERSs and/or the companies who issue them.

The course is a ‘nice to know’ for non-tax professionals to understand the tax implications for individuals and companies who are party to ERSs.

This ERS online course is designed to help you master the tax implications of employee share schemes and option ERS schemes. Participants discuss the various income tax and potential national insurance liabilities arising from non-tax-advantaged schemes and the conditions required for a scheme to be tax-advantaged.

Through a number of extensive examples, delegates will learn how the calculations work and what information must be reported to HMRC each year regarding share schemes in the annual employment-related securities return.

Very practical and understandable course.
The presenter was excellent and it was easy to ask questions. Well structured. I will be more confident with my understanding of how to approach ERS awards in my organisation and the implications from a compliance perspective.

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(min. 50 participants)