TaxSource Total

Here you can access relevant source documents which support the summaries of key tax developments in Ireland, the UK and internationally

Source documents include:

  • Chartered Accountants Ireland’s representations and submissions
  • published documents by the Irish Revenue, UK HMRC, EU Commission and OECD
  • other government documents

The source documents are displayed per year, per month, by jurisdiction and by title

Employment Bulletin

The Employment-Related Shares & Securities Bulletin provides information and updates on developments relating to employment-related securities, including the tax-advantaged employee share schemes.

This bulletin contains articles on:

  1. Quick response to enquiries – a trial
  2. Academics and spin-out companies

Enquiries about the content of this bulletin should be addressed to:

Hasmukh Dodia

Employee Shares & Securities Unit

HMRC Room G53

100 Parliament Street

London

SW1A 2BQ

Email: Shareschemes@hmrc.gsi.gov.uk

The Bulletin will be published as and when sufficient articles or updates are available, or when HMRC has an item that it wishes to bring to your attention quickly. We welcome any suggestions for future articles although we cannot guarantee publication.

A reference to ITEPA is a reference to the Income Tax (Earnings & Pensions) Act 2003 as amended.

1. Quick response to enquiries – a trial

HMRC is aware that customers sometimes need a quick response to enquiries in relation to the tax-advantaged share schemes. It has worked with members of the ERS Forum Tax Advantaged Share Schemes sub-group to design a ‘quick HMRC response’ arrangement for certain enquiries, which will start on a four month trial basis from 14 January 2013. This trial will help HMRC assess whether to offer such an arrangement on a permanent basis.

The terms of the trial are as follows:

  • HMRC will only respond to queries on a ‘quick response’ basis if it is satisfied that the query is capable of being dealt with quickly and relates to one of the following:
    • a variation of share capital;
    • an alteration to an identified key feature;
    • a company reorganisation;
    • other circumstances in which HMRC is satisfied that a quick response can be made and is required.
  • HMRC will only respond to queries using this arrangement if all the necessary information is submitted with the query;
  • A query will not be eligible for this arrangement if it takes HMRC more than one hour to deal with;
  • HMRC will respond to queries under this arrangement within 7 working days of the date of receipt;
  • Customers will be advised by email within the same timeframe where an enquiry is not eligible for this arrangement, and these enquiries will be dealt with in order of date of receipt to the normal timescales;
  • HMRC will not enter into correspondence on the question of whether any enquiry is eligible for this arrangement;
  • The trial may be suspended at any point if HMRC is unable to continue with it. If the arrangement is suspended, customers will be advised via email automated response. The response will indicate why it has been necessary to suspend the arrangement and when it is expected to be reinstated.

To be included in the trial, queries must meet the following requirements:

  • Queries must be sent by email to shareschemes@hmrc.gsi.gov.uk.
  • The subject header of the email must include the words “Quick Response Trial”.
  • The following information must be submitted with the query;
    • relevant reference number(s) for the scheme(s) concerned;
    • an outline of the reasons why the query qualifies to be dealt with under this arrangement, including the relevant timeline;
    • the relevant facts surrounding the issue which is the subject of the query so that HMRC has enough information to understand the context and the basis for the query;
    • copies of all supporting documents with the relevant parts identified;
    • the reasons for the query including an explanation of the precise point or points on which there is uncertainty, together with details as to why there is uncertainty on these points;
    • an agreement to correspond via email.

Throughout the period of the trial HMRC will monitor:

  • the number of enquiries received via this arrangement;
  • the nature of the enquiries;
  • the time spent on dealing with the enquiries under this arrangement;
  • the turnaround times;
  • the impact of this arrangement on the turnaround time of other enquiries and other work;
  • any abuse of the terms of this arrangement.

We will also seek feedback from members of the Tax Advantaged Share Schemes sub group and other customers who take part in the trial. The outcomes of the trial will be reported in September 2013.

2. Academics and spin-out companies

In December 2012, the Government announced that it intends to review whether the tax rules for research institution spin-out companies, which can be found at Chapter 4A of ITEPA, remain relevant to arrangements under which such research institutions commercialise intellectual property. Further details can be found at http://www.hmrc.gov.uk/budget-updates/11dec12/2378.pdf

HMRC is seeking detailed evidence on this point, which can be sent to Shareschemes@hmrc.gsi.gov.uk. In addition, HMRC will consider requests for meetings with stakeholders with an interest in this area, and requests for such meetings can be sent to the same email address.

Source: HMRC. www.hmrc.gov.uk. Copyright Acknowledged.