Clients & Friends Newsletter
Recent
Developments for the First Quarter 2010
Baker & McKenzie's Global Equity Services
Group is pleased to provide you with their latest Clients & Friends
Newsletter which summarizes developments around
the world that affect global stock plans for the first quarter 2010.
Click here to download a copy of the newsletter.
Please also note the approaching deadline
for UK equity award filings. Additional details below.
July 6 Deadline Approaching for UK Equity
Award Filings
Companies
offering equity awards to employees in the UK should be aware that
certain year-end returns need to be filed for such awards by July
6, 2010 for the UK tax year ended April 5, 2010. In
particular, Form 42 is due for unapproved stock options, RSUs,
restricted stock awards and ESPP rights (together "Unapproved Awards") and Form 35 is due for HMRC-"Approved
Options".
-
Form
42 is required to report certain events that have occurred during the UK tax year with respect to
Unapproved Awards, including (i) the grant; exercise and
assignment/release of options; (ii) the grant, vesting,
assignment/release of RSUs; (iii) the grant and vesting of restricted
stock; and (iv) the grant of purchase rights and the purchase of shares
under an ESPP. Form 42 may be completed either by the UK
employer or by the company issuing the shares (i.e.,, the US
parent company). Form 42 for the year ended April 5, 2010 is available
here and guidance on completing the form is available here.
- Form
35 needs to be completed only if a company grants Approved Options and, among
other things, requires reporting of the grant and exercise of Approved
Options during the UK tax year. Form 35 is available here.
Companies should note that
additional reports are also due by the July 6, 2010 deadline, including Form
39 for Share Incentive Plans, Form 34 for Save As
You Earn plans and Form 40 for Enterprise Management
Incentive options. In addition, Form P11D (Return of
Benefits Form) may have to be completed to report any additional tax
liability that applies to an employee because the employer was unable to
withhold the income tax due on an equity award (e.g., at exercise of an
option) and the employee failed to otherwise provide the tax to the
employer within 90 days of the taxable event.
It is
important to ensure the required forms are completed and submitted
before the deadline as the penalties imposed for non-compliance can be
severe.
For more
information or for assistance with the filings, please contact your GES
attorney or any of the partners listed in the clients & friends
newsletter.
