Generate s.431(1) Elections
This guide explains how to generate s.431(1) elections for individual shareholders who are employees of the company. This feature is currently only available once shares have been issued in Kudocs.
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.
The action is available at the end of the share issue process under the s.431(1) election section.
The s.431(1) generation tool is available at the end of the share issue process. The process can be cancelled anytime until the certificates are signed.
Perform or record a share issue on Kudocs.
Under the s.431(1) election certificates section, select {Generate s.431(1) elections}.
Select for which individual shareholders you want to generate the elections.
Select how you want the election to be signed, and if you want the completed elections to be emailed to the relevant shareholders.
Kudocs will create the elections as per your instructions, including obtaining signature from the shareholders and company director if required.
Outputs - all handled automatically by Kudocs
- s.431(1) elections generated.
- If electronic-signature selected, Kudocs will send elections to the selected shareholders and director via email for signing. They only have to sign once – no matter how many elections!
- If selected, Kudocs will send completed copies of the s.431(1) elections to shareholders.
- Process information stored in Kudocs for future reference & any documents filed in document store.