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bigduckontax
bigduckontax, Accountant
Category: UK Tax
Satisfied Customers: 3000
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On a previously filed Form 42 (from 2010), I have realised I

Customer Question

On a previously filed Form 42 (from 2010), I have realised I have put the incorrect answer in the column relating to the uptake of S431 elections in relation to the shares purchased.
I now realise I should have put 1 in that column, whereas I actually put n/a. The purchasers of the shares paid MV at the time, and they were only restricted by the articles, the were not RCA nor did they have any artificial reductions.
If upon sale of the company, will HMRC check the previously filed Form 42s, and will this cause any potential issues when the holders of the elections claim under CGT?
Submitted: 1 year ago.
Category: UK Tax
Customer: replied 1 year ago.
Could you also please confirm if the S431 elections are needed for every share transaction, e.g. between two shareholders, or is it only if they employee is purchasing the shares directly from the company e.g. after a new allotment.Many thanks
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

The first part of you question can be easily resolved by your writing to the office concerned amending your answer. That should correct the record. This sort of error is relatively common, after all we are all human!

s431 elections can, according to HMRC ERSM30450, be made in the following circumstances:

'the election must be made by the employer and the employer jointly;

  • it must be made not more than 14 days from the date of the acquisition, or the chargeable event; and
  • it must be in a form approved by HMRC;.

Thus only required when there is a new allotment.

I do hope my reply has been of assistance.

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