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How to file the HMRC notification for conditional growth shares

When an annual notification is needed for growth shares and how to file it.

You only need to tell HMRC about conditional growth shares if they have been awarded to UK employees or directors.

An annual notification needs to be made by July 6th following the tax year in which the growth shares were issued.

  • If you have not yet registered your scheme with ERS, please follow this guide
  • Once the scheme has been registered, this guide will walk you through submitting the notification (although that guide is written with EMI options in mind, the process is much the same for growth shares)
    • When you go through the process, you will be asked to upload a spreadsheet. You can find this on the Annual notifications area of the platform. The instructions below will help you complete the information we cannot complete on your spreadsheet
  • Once this has been submitted, if you have only issued Growth Shares to UK employees or directors and haven't issued any Unapproved Options (as these will be notified on the same scheme) we recommend closing the scheme if there will be no more issues. This will avoid the need to submit nil notifications in subsequent years.

View HMRC guidance notes on filling in the file here. 

For the notification spreadsheet

Fill in the third sheet, Other_Acquisition_V4, which can be found on the Annual notifications area of the platform.

Most of the questions are reasonably self-explanatory, but a few may need a little help:

2. As this is a bespoke scheme that you have put together not in the aim of tax avoidance, answer "no"

19. Enter "1" for shares

25. Enter "1" as they have restrictions

26. Enter "1" as they bear the risk of forfeiture, if the conditions are not met

27. Enter total vesting period, or best estimate if not specific

28. Enter nominal value of shares, as they have been set at a hurdle to make them worthless on award

29. Enter nominal value of shares, as they have been set at a hurdle to make them worthless on award

30. Enter "yes", if an ITEPA 431 was entered into on share award

31. If yes, then "all"

32. Leave blank

33. Enter aggregate nominal value of the shares

35. Enter "no"

37. Enter "no"

38-40. Enter "no"

Don't forget to close this scheme once you have submitted your notification if you have only issued Growth Shares to UK Employees or Directors.

 

Our team, content and app can help you make informed decisions. However, any guidance and support should not be considered as 'legal, tax or financial advice.'