Growth shares, employees, directors and ITEPA S431

A summary of the steps that you should take in conjunction with growth share scheme set up

When awarding growth shares to employees or Directors there are two actions that need to be taken:

  1. To avoid any future income tax charges under the 'restricted securities legislation', we would recommend that an employee or Director is always required to enter into a section 431 election (see here) within 14 days of the acquisition of shares
  2. You do not need to do an initial notification for employee growth shares when first granted, but you do need to do an annual notification by July 6th each year for the previous financial year's activity.

    This is a similar process to EMI, in that you first need to notify them of the existence of the scheme, then return after about 5 working days to notify the details. So it is important to leave plenty of time.

    Growth shares are considered to be "Other ERS Schemes and Arrangements"

    Further guidance for this process, plus the ODS/CSV that must be used for the detailed return are to be found here:

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