Guidance

Other employment related securities schemes or arrangements: guidance notes

Updated 5 April 2023

1. Guide to completing non-tax advantaged (OTHER) Employment Related Securities (ERS) schemes or arrangements annual return attachment

The company secretary or the person acting as the company secretary must complete an online end-of-year return on or before 6 July for each registered ‘other’ scheme — these are any non-tax advantaged ERS schemes or arrangements.

The ‘other’ attachment only needs to be completed and then uploaded if you have something to report.

You will need to complete an online ‘nil’ return if you have registered the scheme but there are no reportable events.

You can read about the information you must include in your report in the Employment Related Securities Manual.

You must only complete the worksheets that are relevant but upload the whole workbook, including any blank sheets. If you change the structure or formatting of your attachment it will be rejected.

If you have created your own comma-separated values (CSV) files using the HMRC technical note, upload each CSV file that contains data relevant to that scheme type. The comma-separated values template you have created must accurately match the exact wording on the HMRC technical note. You must make sure all punctuation and grammar match. If the column does not accurately match the technical specification, it will not be possible to submit the file successfully.

You can use the Employment related securities (ERS) checking service to check your attachment. The checking service will tell you if and where there are any formatting errors in your attachment. You can use the checking service as often as you like. Checking your attachments regularly allows you to identify and correct these errors. This makes it easier to submit your return at the end of the year. The checking service is accessed through view my schemes and arrangements’ on the online ERS service.

2. General guidance on valuations

All values should be entered in pounds sterling and pence and entered to 4 decimal places. Where necessary, round up figures ending in 5 or more and round down figures ending in 4 or less. Use any reputable currency convertor to convert to pounds sterling if the value is quoted in another currency.

There is no change in valuation practice with the introduction of the templates. It is not necessary to have formally agreed the valuation of shares and securities with HMRC. However, where shares are not listed on a recognised stock exchange, you may have asked for a valuation from HMRC. If you agreed a valuation with HMRC then provide the reference number on the attachment. If the number is prefixed with ‘Company Reference Number (CRN)’ do not enter those letters. If you did not get a valuation you should continue to retain records of how you reasonably established the valuation.

2.1 Actual Market Value (AMV)

AMV is the value of a share or security after taking into account any restrictions or risk of forfeiture.

2.2 Unrestricted Market Value (UMV)

UMV is the value of a share or security ignoring any restrictions or risk of forfeiture.

2.3 Recognised stock exchange

AIM is not a recognised stock exchange. For more information about recognising stock exchange read Recognised stock exchanges: definition, legislation and tables.

2.4 General guidance on completing the attachment

You must use the required formats mentioned within this guide when answering a question or a column requires an entry. If a question does not apply or is not mandatory, leave the entry blank.

Entering ‘N/A’ or ‘not applicable’ will result in your attachment being rejected.

You can read the technical note to find out if a field is mandatory, conditional mandatory or optional and this will explain the formatting required for each question.

Where a question or column requires a ‘yes’ or ‘no’ entry, the following formats are acceptable:

• Yes
• yes
• YES
• No
• no
• NO

2.5 Common fields on ‘other’ worksheets

These fields appear across most worksheets of the ‘other’ ERS schemes attachment. This guidance will help you give HMRC the correct information.

Is the event in relation to a disclosable tax avoidance scheme?

If your scheme or arrangement has been disclosed to HMRC as part of the disclosure of tax avoidance schemes (DOTAS) rules, enter ‘yes’.

Read the rules about DOTAS.

2.6 DOTAS reference

If you’ve disclosed a tax avoidance scheme under the DOTAS rules, HMRC will have given you an 8 digit-long Scheme Reference Number (SRN).

2.7 Employing company

The company that employs the employee who was awarded or acquired the ERS.

2.8 Employee first name

This is the employee’s first name.

2.9 Employee second name

If the employee’s second name is not available then do not make any entry in this column.

2.10 Employee last name

This is the employee’s last name.

2.11 National Insurance number

In most cases, individuals included on an ERS end of year return should have a National Insurance number. However, there may be some exceptional circumstances where an individual needs to be included on a return but does not have a National Insurance number. In these circumstances, an alternative reference should only be used on the ERS end of year return; it should not be used in any other correspondence.

This reference is not a National Insurance number and should not be given to the individual or used in any other correspondence with HMRC.

Where there are exceptional circumstances, the required format for the alternative ERS reference will be a total of 9 characters. This will be 2 letters, 6 numbers and 1 letter consisting of:

• TN – to indicate an ERS reference
• Employee Date of Birth in format DDMMYY (for example, 080403) ― this data will enable HMRC to trace the individual
• No National Insurance number Reason Identifier (X, Y or Z) ― this is to identify the reason why an individual does not have a National Insurance number
• X ― Under 16 years old
• Y ― Applied for a National Insurance number and is waiting to receive it
• Z — Never paid National Insurance contributions as they have not been liable to UK National Insurance contributions ― for example, they’re not resident in the UK or are an ‘intra-company worker’ on transfer to work in the UK

2.12 Company Registration Number

This is the number issued by Companies House to UK registered companies. If the company is not UK registered or does not have this number then do not make any entry in this column.

2.13 Recognised stock exchange

AIM is not a recognised stock exchange. For more information, go to Recognised stock exchanges .

2.14 Was a National Insurance contributions election or agreement operated

This is when the employer and the employee agree or jointly elect for the employee to meet the employer’s liability to pay secondary National Insurance contributions on certain types of share awards and share options gains. The employee can then get a deduction equal to the amount of secondary or employers’ National Insurance contributions transferred when working out the amount chargeable to income tax. ‘Operated’ means when the secondary or employers’ NIC is recovered under the terms of election or agreement already made between the employer and the employee.

2.15 Was PAYE operated?

If the reportable event has a taxable amount then PAYE should have been operated if the shares are readily convertible into cash. There are exceptions for example following death. Enter ‘yes’ or ‘no’ in this field.

2.16 Was any adjustment made for amounts subject to apportionment for residence or duties outside the UK?

Where the employee is an ‘internationally mobile employee’ (IME), the income derived from the securities may be apportioned if the required conditions are met. The rules for IMEs will identify any foreign securities income which is either not chargeable to UK income tax or taxable only when remitted to the UK. Guidance on the ERS rules for IMEs can be found at ERSM162000.

For further information on the remittance see Guidance note for residence, domicile and the remittance basis: RDR1

3. Other_Grants_V4 worksheet

Use this worksheet to tell HMRC about any employment related securities options granted in the tax year. Include all types of securities options including nil cost options. Reporting of Restricted Stock Units (RSUs) will depend on how these are structured. Whether the RSUs are considered securities options or not will determine on which worksheet these should be reported. For more read securities options guidance.

3.1 Question 1: Date of grant (yyyy-mm-dd)

Enter the date ERS options were granted to the employees. The date will be on the option certificate and it must be within the tax year covered by this return. All options granted on the same date can be reported in one row as long as the Unrestricted Market Value of the security is the same for all options granted on that date.

3.2 Question 2: Number of employees granted options

Enter the total number of employees granted ERS options on this grant date.

3.3 Question 3: Unrestricted market value of a security at date of grant

Enter the Unrestricted Market Value (UMV) of a security ignoring any restrictions or the risk of forfeiture. This is not the exercise, grant or strike price which may or may not be the same as UMV.

3.4 Question 4: Number of securities over which options granted

Enter the total number of securities under ERS options granted to the employees on this grant date.

4. Other_Options_V4 worksheet

Use this worksheet to tell HMRC about options exercised, released, assigned, cancelled or lapsed in the tax year. Use this worksheet to also report securities acquired from a securities option without exercising it. Do not fill in this sheet if options are released, assigned, cancelled or lapse for nil consideration.

Use a different row to report each individual’s details.

4.1 Question 1: Date of event (yyyy-mm-dd)

Date of event is the date the ERS options were exercised, released, assigned, cancelled or lapsed.

4.2 Questions 2 to 7: See common fields guidance

4.3 Question 8: PAYE reference of employing company

Enter the PAYE reference number of the employee’s employing company. The employing company should be the company that has the PAYE obligation.

4.4 Question 9: Date of grant of option subject to the reportable event (yyyy-mm-dd)

Enter the date ERS options were granted to the employees. The date would be on the option certificate or agreement.

4.5 Question 10 to 19: Grantor or Employing Company, CRN, CT Ref, PAYE Ref

Grantor Company is the company that decides which employees will be awarded options. If options were not granted by a company but by a partnership, a sole trader or an individual, include their details here. You do not need to provide a CRN, CT ref or PAYE ref if they do not have them.

4.6 Question 20 to 29: Company whose securities under option

Provide details of the company whose securities are under option. Scheme rules and other documents relating to the award of the option will have the details of this company.

4.7 Question 30: Were the options exercised?

Enter ‘yes’ if the employee exercised their options.

Enter ‘no’ if the option was not exercised but there is another event to be reported in relation to that option.

4.8 Question 31: Total number of securities employee entitled to on exercise before any cashless exercise or other adjustment

Enter the gross number of securities the employee is entitled to acquire from this exercise, vesting or event. 

For example, an employee exercises options to acquire 100 shares but sells 40 to pay the tax and NIC liability. Here the employee actually acquires 100 shares, even though some (or all) are sold immediately to cover the tax and NIC. The total number that is entered into Question 31 is 100. This scenario is usually seen in a cashless exercise.

For example, an employee exercises options to acquire 100 shares. The company uses its own cash to settle the tax and NIC liability, and to cover the cost, issues only 60 shares to the employee. Here the employee actually acquires 60 shares. The total number of shares to be entered at Question 31 is 60. The shares given up (40) are entered on another row at Question 38 and Question 39. This scenario is known as net settlement.

4.9 Question 32: If consideration was given for the securities, the amount given per security

Only enter any consideration paid by the employee per security and not the total to acquire the security. This will most commonly be the exercise price. Exercise price is also often referred to as grant or strike price.

4.10 Question 33: If securities were acquired, Market Value of a security on the date of acquisition

If securities are restricted and no election is made to disregard all restrictions, enter AMV of a security on the date of acquisition. If securities are unrestricted or an election was made to disregard all restrictions, enter UMV of a security on the date of acquisition.

4.11 Question 34: If shares were acquired, are the shares listed on a recognised stock exchange? (yes/no)

AIM is not a recognised stock exchange. For more information, go to Recognised stock exchanges.

If ‘yes’, go to question 37.

If ‘no’, go to question 35.

4.12 Question 35: If shares were not listed on a recognised stock exchange, was valuation agreed with HMRC? (yes/no)

If ‘yes’, go to question 36.

If ‘no’, go to question 37.

4.13 Question 36: If yes, enter the HMRC valuation reference given

The HMRC valuation reference will be on the valuation letter sent to you from the Shares and Assets Valuation office. The reference given will normally be your Company Reference Number (CRN). Enter the full reference including the letters and numbers. If the beginning of your reference has three letters, only include the numbers.

4.14 Question 37: If the shares were acquired, total deductible amount excluding any consideration given for the securities

This is the total amount of:

• any amount paid for the grant of the option
• any expenses incurred for the acquisition of the securities

Do not include:

• exercise price also often referred to as grant or strike price
• any expenses in connection with the sale or disposal of the securities
• any Employers NIC the employee may have agreed to pay under a joint NIC Agreement or Election
• income tax

4.15 Question 38: If securities were not acquired, was money or value received on the release, assignment, cancellation or lapse of the option? (yes/no)

If ‘yes’, go to question 39.

If ‘no’, no further information for this event is required.

4.16 Question 39: If yes, amount of money or value received

Enter the amount of money or money’s worth received by the individual employee or anyone else for the ERS options released (including exchanges), cancelled or lapsed.

4.17 Question 40 to 42: See common fields guidance

5. Other_Acquisition_V4 worksheet

Use this worksheet to tell HMRC about acquisition of securities but not through securities options in the tax year. You would report acquisitions by employees of securities with or without any restrictions attached to them, securities that have a right to convert to other securities and shares awarded to employees under an Employee Shareholder Agreement.

Use a different row to report each individual’s details.

5.1 Question 1: Date of event (yyyy-mm-dd)

Enter date employee was awarded or acquired the securities.

5.2 Questions 2 to 7: See common fields guidance

5.3 Question 8: PAYE reference of employing company

Enter the PAYE reference number of the employee’s employing company. The employing company should be the company that has the PAYE obligation.

5.4 Questions 9 to 17: Company whose securities acquired

Provide details of the company whose securities are acquired. This may be the same as the employing company.

5.5 Question 18: PAYE reference of company whose securities acquired

If the company whose securities are acquired has a PAYE reference then enter that reference in this column.

5.6 Question 19: Description of security

Choose the most accurate description from this list and only enter the corresponding figure from 1 to 9:

1. Shares
2. Rights under contracts of insurance
3. Debentures, debenture stock, loan stock, bonds, certificates of deposit or other instruments creating or acknowledging indebtedness
4. Warrants
5. Certificates and other instruments conferring rights in respect of securities
6. Units in a collective investment scheme
7. Options and Futures
8. Rights under contracts for differences
9. Alternative finance arrangements

5.7 Question 20: If the securities are not shares enter ‘ no’ and go to question 24. If the securities are shares, are they part of the largest class of shares in the company?(yes/no)

Some companies create different classes of ordinary share, for example ’A’ and ‘B’ ordinary shares. The largest class of share is the class of shares with entitlement to the largest proportion of value (£) on a winding-up. If you only have one class of shares, enter ‘yes’. If you have more than one class of share and they are equal in value enter ‘yes’.

5.8 Question 21: If the securities are shares, are they listed on a recognised stock exchange? (yes/no)

AIM is not a recognised stock exchange. For more information, go to Recognised stock exchanges.

If ‘yes’, go to question 24.

If ‘no’, go to question 22.

5.9 Question 22: If shares were not listed on a recognised stock exchange, was valuation agreed with HMRC? (yes/no).

If ‘yes’, go to question 23.

If ‘no’, go to question 24.

5.10 Question 23: If yes, enter the HMRC valuation reference given

The HMRC valuation reference will be on the valuation letter sent to you from the Shares and Assets Valuation office. The reference given will normally be your Company Reference Number (CRN). Enter the full reference including the letters and numbers. If the beginning of your reference has three letters, only include the numbers.

5.11 Question 24: Number of securities acquired

Enter the total number of and not the value of the securities acquired.

5.12 Question 25: Security type

Choose the most accurate description from this list and enter the corresponding figure from 1 to 3:

1. Restricted securities (or an interest in securities)

Securities are restricted if their market value is less than it would otherwise be because:

• there is a restriction on the rights including the rights to keep or sell the securities
• a disadvantage could arise if the rights to the securities were exercised, including disadvantages to do with keeping or selling of the securities
• a transfer, reversion or forfeiture will occur if certain circumstances arise or do not arise

They are not restricted if they must be sold or transferred if employment ends because of misconduct.

2. Unrestricted securities

Securities that do not have any restrictions that could affect market value.

3. Convertible securities

Securities are convertible If:

• the holder can convert them into securities of a different description (even if this is dependent on certain conditions being met)
• the holder may be granted the right to convert some time in the future by contract, agreement, arrangement, condition or under the Articles of Association of the company whose securities are being issued
• a contract, agreement, arrangement or condition allows the securities to be converted by someone other than the person holding them

If the securities are restricted enter 1 and go to question 26. If the securities are unrestricted enter 2 and go to question 29. If the securities are convertible enter 3 and go to question 32. If the securities are both restricted and convertible, enter 1 and answer all the questions 26 to 40.

5.13 Question 26: If restricted, nature of restriction

Choose the most applicable description from this list and enter the corresponding figure from 1 to 3. If more than one description applies then choose the description that first applies from this list:

1. Forfeiture

Where the holder of or interest in the securities will no longer have any beneficial interest in them.

2. Restriction on freedom to retain or dispose of securities

This could include restrictions on voting or dividends, or a rule which means the holder cannot sell the securities for a fixed period.

3. Potential disadvantage to individual in respect of the securities

This could be any rule that would mean the employee would suffer a disadvantage if the securities were sold, for example a rule which meant an employee would have to leave their employment if the shares were sold.

5.14 Question 27: If restricted, length of time of restriction in years

If less than a whole year, enter as a decimal fraction, for example 0.6. Enter 999 if the length of restriction is conditional, variable or has not been determined.

5.15 Question 28: If restricted, actual market value per security at date of acquisition

Enter AMV per security. However, no entry is should be made if a section 431 election has been made to disregard all the restrictions.

5.16 Question 29: Unrestricted market value per security at date of acquisition

Enter UMV per security.

5.17 Question 30: If restricted, has an election been operated to disregard restrictions?

Under the employment-related securities tax legislation it is possible for an employer and employee to enter into what is called a Section 431 or 430 election. The effect of a section 431 election is to disregard all or some restrictions depending on how it is made.

5.18 Question 31: If an election been operated to disregard restrictions have all or some been disregarded?

Under the employment-related securities tax legislation it is possible for an employer and employee to enter into what is called a Section 431 or 430 election. The effect of a section 431 election is to disregard all or some restrictions depending on how it is made. Depending on the type of election made you enter all or some.

5.19 Question 32: If convertible, market value per security ignoring conversion rights

Enter the the market value of the securities acquired as if they were not convertible. So, in valuing them, the value of the right to convert must be ignored.

5.20 Question 33: Total price paid for the securities

If the securities were acquired at no cost (without any payment for them) enter 0.0000. If you are reporting a share for share exchange event then you would enter the total value of the shares given up.

5.21 Question 34: Was the price paid in pounds sterling? (yes/no)

If the securities were acquired at no cost and you have entered 0.0000 in question 33 enter ‘no’ to question 34.

5.22 Question 35: Was there an artificial reduction in value on acquisition?

Only enter yes if there were artificial reductions (not discounts) in the market value of securities arising from non-commercial actions. See examples.

Non-commercial actions include any reduction made:

• for anything other than a genuine commercial purpose
• as part of a scheme or arrangement designed to avoid tax or National Insurance contributions
• because of any transaction between companies within a group on preferential terms that would not have been made if the companies were at arm’s length

5.23 Question 36: If there was an artificial reduction in value, nature of the artificial reduction

Only make an entry in this column if you have answered ‘yes’ to question 35. Choose the most accurate description from this list and enter the corresponding figure from 1 to 3:

1. Non-commercial transaction
2. Scheme or arrangement designed to avoid tax or National Insurance contributions
3. Inter-company transaction on a non-arm’s length basis

5.24 Question 37: Were shares acquired under an employee shareholder arrangement?

You should only make an entry in this column if shares were acquired under an Employee Shareholder agreement as defined in Section 205A of the Employment Rights Act 1996. An employee shareholder is someone who works under an employee shareholder employment contract. Employees with an employee shareholder agreement have different employment rights to other employees. As part of the agreement employee shareholders must be given shares worth at least £2000 on receipt.

5.25 Question 38: If shares were acquired under an employee shareholder arrangement, was the total AMV of shares £2,000 or more? (yes/no)

Enter yes if the AMV of the shares acquired under an employee shareholder arrangement is £2,000 or more.

5.26 Question 39 to 40: see common fields guidance

6. Other_RestrictedSecurities_V4 worksheet

Use this worksheet to tell HMRC details of chargeable events after acquisition of restricted securities. Securities are restricted securities if their market value is less than it would otherwise be as a result of certain restrictions relating to transfer, reversion or forfeiture relating to the securities. The chargeable amount is calculated by the application of a formula. An electronic calculator to help you determine this amount is available from email:[email protected].

Chargeable events arise if:

• the securities stop being subject to forfeiture (conditional)
• any restriction is changed or removed from the securities by any means, including if any time restrictions have lapsed
• the securities are sold to an unconnected person while still restricted

Use a different row to report each individual’s details.

6.1 Question 1: Date of event (yyyy-mm-dd)

Enter date of reportable events occurring after acquisition of restricted securities.

6.2 Questions 2 to 7: See common fields guidance

6.3 Question 8: PAYE reference of employing company

Enter the PAYE reference number of the employee’s employing company. The employing company should be the company that has the PAYE obligation.

6.4 Question 9: Date securities originally acquired

Enter the date when the restricted securities on which you are now reporting an event were originally acquired.

6.5 Question 10: Number of securities originally acquired

Enter the number of and not the value of restricted securities originally acquired.

6.6 Question 11: For disposals or lifting of restrictions, total chargeable amount Enter the total amount

Chargeable when restrictions on securities are lifted or there is a disposal of restricted securities.

6.7 Question 12: For lifting of restrictions, are the shares listed on a recognised stock exchange? (yes/no)

AIM is not a recognised stock exchange. For more information, go to Recognised stock exchanges .

If ‘yes’, go to question 15.

If ‘no’, go to question 13.

6.8 Question 13: If shares were not listed on a recognised stock exchange, was valuation agreed with HMRC? (yes/no)

If ‘yes’, go to question 14.

If ‘no’, go to question 15.

6.9 Question 14: If yes, enter the HMRC valuation reference given

The HMRC valuation reference will be on the valuation letter sent to you from the Shares and Assets Valuation office. The reference given will normally be your Company Reference Number (CRN). Enter the full reference including the letters and numbers. If the beginning of your reference has three letters, only include the numbers.

6.10 Question 15: For variations, date of variation

Enter the date when there has been an increase in value of the securities because of alteration in the rights or any restrictions attached to them or other shares in the company. Do not complete this column in connection with the variation if:

• all of the shares of the same class are similarly restricted
• the majority of the shares are held by persons other than employees or directors
• employees or directors control the company by virtue of their holdings of that class of shares
• the company is a subsidiary and has only one class of shares

6.11 Question 16: For variations, AMV per security directly before variation

Enter the AMV of the security immediately before the variation of restrictions came into effect.

6.12 Question 17: For variations, AMV per security directly after variation

Enter the AMV of the security immediately after the variation of restrictions came into effect.

6.13 Question 18 to 20: See common fields guidance

7. Other_OtherBenefits_V4 worksheet

You must fill in this sheet if an employee, or a person connected with an employee, has received a benefit, not otherwise chargeable to Income Tax, in connection with employment-related securities. The ‘not otherwise chargeable’ exemption does not apply in cases involving avoidance of tax or National Insurance contributions. Use this sheet to tell HMRC about any benefit received after the acquisition in the tax year. Benefits include a whole range of things and more information read Post Acquisition Benefits from Securities.

Use a different row to report each individual’s details.

7.1 Question 1: Date of event (yyyy-mm-dd)

Enter the date the employee received benefits from the securities they hold.

7.2 Questions 2 to 7: See common fields guidance

7.3 Question 8: PAYE reference of employing company

Enter the PAYE reference number of the employee’s employing company. The employing company should be the company that has the PAYE obligation.

7.4 Question 9: Date securities originally acquired

Enter the date when the securities from which the employee has received benefits were originally acquired.

7.5 Question 10: Number of securities originally acquired

Enter the number not the value of securities originally acquired.

7.6 Question 11: Amount or market value of the benefit

Enter the amount or market value of the benefit received by the employee from the securities and NOT the market value of the securities themselves.

7.7 Question 12 to 13: See common fields guidance

8. Other_Convertible_V4 worksheet

Use this worksheet to tell HMRC about any benefit or chargeable amount received from convertible securities in the tax year. Only complete this sheet if an employee has acquired employment-related securities that carry an immediate or potential entitlement to be converted into securities of a different description.

Do not fill in this sheet if:

• all the shares of the same class are convertible securities
• all the shares of the same class are affected by an event similar to the chargeable event, and either immediately before the chargeable event
  • employees hold the majority of the company’s shares of that class and as a consequence can control the company
  • associated companies, employees and their relatives do not hold the majority of the company’s shares of the same class as those shares acquired
• the avoidance of tax and National Insurance contributions was not the main purpose, or one of the main purposes, of the arrangements under which the right or opportunity to acquire the employment-related securities was made available.

Use a different row to report each individual’s details.

8.1 Question 1: Date of event (yyyy-mm-dd)

Enter the date of reportable event in connection with convertible securities acquired by employees.

8.2 Questions 2 to 7: See common fields guidance

8.3 Question 8: PAYE reference of employing company

Enter the PAYE reference number of the employee’s employing company. The employing company should be the company that has the PAYE obligation.

8.4 Question 9: Date securities originally acquired

Enter the date when the convertible securities on which you are now reporting an event were originally acquired.

8.5 Question 10: Number of securities originally acquired

Enter the number not the value of securities originally acquired.

8.6 Question 11: For receipt of money or value, enter amount or market value of the benefit

You should only make an entry if money or value was received for the securities.

Enter the amount or market value of the benefit received by the employee from the securities and not the market value of the securities themselves.

If you make entry in this column then go to question 14.

8.7 Question 12: For conversion, disposal or release of entitlement to convert, total chargeable amount

Enter the total amount chargeable from the conversion of securities, or the disposal of the securities or the removal of the right to convert the securities.

8.8 Question 13 to 15: See common fields guidance

9. Other_Notional_V4 worksheet

Use this worksheet to tell HMRC about the amount of notional loan outstanding immediately before discharge for each relevant person in the tax year. You must fill in this sheet where a notional loan is treated as discharged (creating a taxable amount) when the employment-related securities are disposed of other than to a connected person or an outstanding liability to pay for the securities is released. Tax will arise on the occasion of a notional loan being discharged.

Use a different row to report each individual’s details.

9.1 Question 1: Date of event (yyyy-mm-dd)

Enter the date the notional loan was treated as discharged.

9.2 Questions 2 to 7: See common fields guidance

9.3 Question 8: PAYE reference of employing company

Enter the PAYE reference number of the employee’s employing company. The employing company should be the company that has the PAYE obligation.

9.4 Question 9: Date securities originally acquired

Enter the date when the securities on which you are now reporting an event were originally acquired.

9.5 Question 10: Number of securities originally acquired

Enter the number not the value of securities originally acquired on which the discharge of notional loan has occurred.

9.6 Question 11: Amount of notional loan discharged

Enter the amount of notional loan outstanding immediately before discharge.

9.7 Question 12 to 13: See common fields guidance

10. Other_Enhancement_V4 worksheet

You must use this worksheet to tell HMRC about any securities artificially enhanced. For example, the market value of an employee’s employment related securities is increased by more than 10% by non-commercial actions in a relevant period. The relevant period runs from the date securities are acquired to the earlier of the date of disposal or 5 April of the tax year for this reportable event. The date of the taxable event will be 5 April or the date the securities were disposed of if earlier.

Use a different row to report each individual’s details.

10.1 Question 1: Date of event (yyyy-mm-dd)

The date of the taxable event will be 5 April or the date the securities were disposed of if earlier.

10.2 Questions 2 to 7: See common fields guidance

10.3 Question 8: PAYE reference of employing company

Enter the PAYE reference number of the employee’s employing company. The employing company should be the company that has the PAYE obligation.

10.4 Question 9: Date securities originally acquired

Enter the date when the securities on which you are now reporting an event were originally acquired.

10.5 Question 10: Number of securities originally acquired

Enter the number not the value of securities originally acquired on which the discharge of notional loan has occurred.

10.6 Question 11: Total UMV on 5 April or date of disposal if earlier

Enter the total UMV on 5 April or date of disposal of securities if earlier. This is the market value of the securities ignoring the effect of restrictions, any artificial reduction, or in relation to convertible securities the market value excluding the right to convert.

10.7 Question 12: Total UMV ignoring effect of artificial increase on date of taxable event

Enter the total UMV on 5 April or date of disposal of securities if earlier. This is the market value of the securities ignoring the effect of restrictions, any artificial reduction, or in relation to convertible securities the market value excluding the right to convert.

10.8 Question 13 to 14: See common fields guidance

11. Other_Sold_V4 worksheet

Use this worksheet to tell HMRC about securities sold for more than their market value for each relevant person in the tax year. This worksheet should be completed if the employee, or a person connected with the employee, has disposed of employment related securities on or after the 6 April for more than their market value at the time of disposal. In this case the consideration received on disposal of the employment related securities, less their market value and expenses incurred at the time of disposal, is employment income.

Use a different row to report each individual’s details.

11.1 Question 1: Date of event (yyyy-mm-dd)

Enter date securities were sold for more than their market value.

11.2 Questions 2 to 7: See common fields guidance

11.3 Question 8: PAYE reference of employing company

Enter the PAYE reference number of the employee’s employing company. The employing company should be the company that has the PAYE obligation.

11.4 Question 9: Number of securities originally acquired

Enter the number not the value of securities originally acquired on which the discharge of notional loan has occurred.

11.5 Question 10: Amount received on disposal

Enter the consideration or amount actually received on the disposal of the securities.

11.6 Question 11: Total market value on disposal

Enter the total market value of the securities on date of disposal.

11.7 Question 12: Expenses incurred

Enter the total amount for the expenses incurred for the disposal of securities.

11.8 Question 13 to 14: See common fields guidance