伊人直播

When looking at the deduction available for net settled share options you also need to consider both the SBP expense and the amount chargeable under ITEPA 2003 in a similar way as cash cancelled options (BIM44412). However the SBP expense recognised in these cases will relate to both the shares acquired and those retained by the employer to meet the tax and NICs liabilities (the net settled element) so the SBP expense should be apportioned into:

• the amount relating to the shares acquired, on which Part 12 relief has been claimed and for which S1038 denies another deduction and聽聽

• the amount relating to the shares not acquired for which S1038A(7) prevents S1038A from denying a deduction聽

The amount subject to a charge under ITEPA 2003 should be apportioned into:

• the amount charged in respect of the shares which were acquired

• the amount charged in respect of the shares which were not acquired聽

The amount calculated in respect of the shares not acquired should be further restricted so that it is not more than the difference between the Part 12 deduction taken in respect of the shares acquired and the total amount subject to the charge under ITEPA聽2003.

The maximum deduction allowed in the period of the Net Settlement will be the lower of:

• the amount of the SBP expense recognised in the period which relates to the shares not acquired or聽聽

• the amount calculated as that on which the employee is subject to a charge under ITEPA in respect of the shares not acquired聽

It may be possible to amend earlier years and take a deduction for the amount of the SBP expense recognised in the period which relate to the Net Settled options.聽 However, the maximum cumulative relief available for the Net Settled option for all available periods will always be the lower of:聽

• the total amount recognised as SBP expenses over the vesting period, in relation to the shares not acquired under the options which have been Net Settled聽

• the amount on which the employee is subject to a charge under ITEPA in respect of the shares not acquired

Example 1:聽 Apportionment聽聽聽

The apportionment for the SBP expense and the amount charged under ITEPA must be made on a fair and reasonable basis. An example of a fair and reasonable apportionment is:聽

• a share option is granted over 1000 shares聽

• on exercise, 580 shares are acquired and 420 shares are retained for the net settlement

A fair apportionment would be for 42% of the SBP expense to be considered available in calculating the deduction.聽聽

Example 2: deduction allowable for a net settled option聽

An employee exercises an option over 1000 shares with a value of 拢2 per share and an exercise price of 拢0.50 per share.聽聽

The employee has a total ITEPA 2003 liability on an amount of 拢1,500, which is based on the value of whole of the option settled including the shares not acquired.聽聽聽

By their own calculations, the employer needs to retain 420 shares in order to settle the ITEPA liability on the 拢1,500 and the employee acquires 580 shares.聽聽

The fair value at grant was 拢2000 and a SBP expense of 拢400 is recognised in the period the option was exercised, which relates to both the shares acquired and the shares not acquired.聽聽聽

Making a fair apportionment as set out in example 1, the amount of the SBP expense available for a deduction in respect of the shares not acquired would be聽拢400 x 42% = 拢168.聽

Similarly, the amount subject to a charge under ITEPA in respect of the shares not acquired would be 拢1,500 x 42% = 拢630.聽 聽

Using these apportionments, the amount allowed as a deduction would be聽拢168, which is the lower of:聽 聽

• the amount of the SBP expense recognised in the period the option was exercised in respect of the shares not acquired of 拢168 and 聽聽聽聽聽聽聽聽

• the amount subject to an ITEPA charge in respect of the shares not acquired of 拢630聽

If SBP expenses in earlier periods are available for deductions to be taken, the total deduction would be capped at 拢630, being the lower of the apportioned total SBP expense recognised over vesting period and the apportioned amount subject to a charge under ITEPA.