A report on Form 42 is only required if a reportable event occurs in the tax year ended 5 April. The following are reportable events (ITEPA03/S421K (3)):
- an acquisition, by a person, of securities (including by exercise of a securities option), an interest in securities or a securities option
- by reason of his or her employment, or
- by reason of employment of any other person.
- an event which is a “chargeable event” in relation to restricted securities and restricted interests in securities,
- an event which is a “chargeable event” in relation to convertible securities and interests in convertible securities,
- the doing of anything which artificially enhances the market value of the securities,
- an event which discharges a notional loan relating to securities and interests in securities acquired for less than market value,
- disposal of securities and interests in securities for more than their market value,
- the receipt of a benefit from securities or interest in securities, which gives rise to a taxable amount counting as employment income or would give rise to such an amount but for Chapter 4A (shares in research institution spin-out companies),
- the assignment or release of a securities option acquired pursuant to a right or opportunity available by reason of the employment of the person who acquires the securities option of any other person, and
- the receipt of a benefit in money or money’s worth in connection with either failing or undertaking not to acquire securities pursuant to the employment-related securities option, or granting or undertaking to grant to another person a right to acquire securities which are subject to the employment-related securities option.
RKG Consulting can advise you if there are reportable events to disclose and how to disclose them correctly. Please contact us for further information regarding form 42 reporting requirements. There will be penalties imposed by HMRC for late or non-disclosure.