s.431(1) Elections
What is a s.431(1) election? A section 431(1) (ITEPA 2003) election is relevant when an employee or director acquires employment-related securities (typically shares) that are “restricted securities”. The election is a joint election by the employee and employer to disapply restrictions for tax purposes, so that the employee is taxed upfront on the full (unrestricted) market value of the shares at the time of acquisition, rather than on a potentially higher value when restrictions lift later.
If you select this option, Kudocs will prepare an election for each selected shareholder, get it signed by the shareholder (including asking the shareholder to provide/ confirm their NI number) and the company, and then generate a completed pdf.
Can I use Kudocs to generate a s.431(1) election? Yes! It is very easy to do off the back of a completed share issue. See here for the guide on how to do it.
Can I use Kudocs to generate multiple elections in one go? Yes – you can generate multiple elections in one go. This is done off the back of the relevant share issue.
Can I send completed election certificates to shareholders? Yes, as part of the set up process, you can select to send the signed elections directly to shareholders automatically. You can also select what date to put on the elections. All of this is to save you significant amounts of time and effort!
