ERSM100560 - University Spin-outs

Employment-related securities: return of information

There is a duty to provide information on events relevant to Chapter 4A, such as the transfer of the IP, via the ERS Online Service. The information must be submitted by 6 July following the end of the tax year (5 April) to which it relates.

Where market value was affected by a spin-out, ITEPA03/S421K(g) provides that reportable events include receipt of a benefit that would give rise to a taxable amount but for Chapter 4A. Either or both of the RI and the spin-out may be responsible for making the return, although in practice only one of them would need to do so.

However, returns of reportable events will not be required if all of the following apply:

•       neither the company, nor any other company in the same group or under the same ownership,  is registered for PAYE 
•       the arrangements are not tax-advantaged schemes (that is, not Share Incentive Plan, Save As You Earn, Company Share Option Plan or Enterprise Management Incentive schemes)
•       the company has no obligations to operate PAYE in respect of the reportable event
•       the company has no obligation to operate PAYE in respect of anything else it does

See ERSM140000 for more guidance on completing the annual return.