Section 222 ITEPA charge avoided where option exercise conditional on making good (First-tier Tribunal) | Practical Law

Section 222 ITEPA charge avoided where option exercise conditional on making good (First-tier Tribunal) | Practical Law

The First-tier Tribunal has decided that a provision in a share option scheme, that made it a condition of exercise of an option that the employee made good any PAYE and NICs accounted for by the employer, prevented a charge under section 222 of the Income Tax (Earnings and Pensions) Act 2003 arising. This was because the employee did not acquire a beneficial interest in the shares until the condition was satisfied. (Benedict Manning v HMRC [2013] UKFTT 252 (TC)).

Section 222 ITEPA charge avoided where option exercise conditional on making good (First-tier Tribunal)

by PLC Share Schemes & Incentives
Published on 02 May 2013 • United Kingdom
The First-tier Tribunal has decided that a provision in a share option scheme, that made it a condition of exercise of an option that the employee made good any PAYE and NICs accounted for by the employer, prevented a charge under section 222 of the Income Tax (Earnings and Pensions) Act 2003 arising. This was because the employee did not acquire a beneficial interest in the shares until the condition was satisfied. (Benedict Manning v HMRC [2013] UKFTT 252 (TC)).