Employment related securities, elections and tax

Martin Jackson, senior technical writer, Croner-i, considers when to make an election about employment related securities and how the timing affects tax liability

One of the most common questions asked on the Croner-i tax advice line is whether or not to make an election in respect of employment related securities. Often the caller has been told that the solicitors dealing with the transaction insist that an election must be made and that this prevents a tax charge from arising. Unfortunately, a number of misconceptions seem to be prevalent.

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