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HMRC internal manual

Employment Related Securities Manual

HM Revenue & Customs
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Employment-related securities and options: employers' costs

Employers will want to encourage employee shareholding for good commercial reasons, and there are rules that provide for clarity of the treatment for the costs that employers incur when they award shares or grant options. These rules are designed to allow relief to the employer at the time that the employee accesses the value and pays Income Tax and NICs on the value, and in the same amount as is charged to Income Tax and National Insurance. See ERSM190000 onwards.