Season's Greetings!

18 May 2006 / Ken Moody

Issue: 4058 / Categories: Comment & Analysis , HMRC powers , Income Tax

If it is springtime, it must be form 42 time! KEN MOODY CTA takes readers through the revised rules for submitting forms 42.

THAT TIME OF year is with us again: finalising year-end pay-as-you-earn matters completing P11Ds and forms 42. Forms 42 should be less onerous this year due to relaxations in the reporting requirements but these provide few blanket get-outs so the revised rules need to be properly understood. This article deals with the main relaxations and also comments upon the new HMRC guidance on completion of form 42 particularly in relation to private company shares.
References are to ITEPA 2003 unless otherwise specified. The terms 'securities' and 'shares' are used as though interchangeable although the former is the wider term.

Relaxation of requirements

The Chancellor announced in November 2005 that certain reportable events involving employment-related securities would no longer need to be reported on form 42. The most important change is that the acquisition of founder shares do not have to be reported...

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