HMRC has published minor amendments and clarifications to guidance in the Employment-related securities manual (ERSM).

ERSM20220 has been amended to remove incorrect guidance suggesting that the exemption from deemed employment-related status for securities acquired from an individual as a result of a family or personal relationship could apply where an individual procures an award of securities by a company (see section 421B(3) of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003)).

ERSM30370 has been amended to add guidance that, in HMRC’s view, the five year maximum period for forfeiture restrictions to fall within section 425 of ITEPA 2003 expires at midnight on the fifth anniversary of the date of acquisition of the securities.