HMRC elect to update Manual

HMRC have updated its Employment Related Securities Manual in relation to the various restricted securities elections.  Among the changes, it has been confirmed that a restricted securities election, such as those pursuant to s431 Income Tax (Earnings and Pensions) Act 2003, can now be made in formats other than HMRC’s standards forms, including electronically, and as part of another document such as a share subscription agreement. 

Interested parties will note that it used to be the case that such restricted securities elections had to be made in HMRC’s agreed form, or if amendments were made to the form then they needed to be approved.  However, as long as the format now used contains no less detail than the standard HMRC form, then that will be acceptable to HMRC and, therefore, also to advisers reviewing such elections during due diligence exercises, for example. 

As always, HMRC can ask for evidence that a restricted securities election has been entered into, and companies should therefore keep signed elections in a safe place should they ever be requested.

If you have any questions on whether you should complete a s431 in relation to the activity on your share scheme arrangements contact us at