Form 42 share plan reporting


All companies that operate employee share incentive arrangements in the UK (other than HM Revenue & Customs (HMRC) approved incentives), or that have directors or employees who simply acquire shares in the company, must complete an annual tax return, Form 42, by 6 July 2011. Failure to meet the obligations may result in significant penalties.

Who needs to file a Form 42?

The following entities must file a Form 42 with HMRC:

• The employer (whether a UK or an overseas company)

• The person who awarded the securities or options (e.g., employer benefit trust), or

• The person who issued the securities or options (e.g., parent company)

Usually, the UK employer discharges the reporting obligation on behalf of the corporate group.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Reed Smith | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.