In L Moore v HMRC [2023] UKFTT 399 (TC) (25 April 2023) the First-tier Tax Tribunal (FTT) held that restricted share units (RSUs) issued by NYSE Euronext (NYSE) to the taxpayer Mr Moore following its acquisition of a company in which he held a minority shareholding were not granted in consideration for the sale of his shares. As a result Mr Moore was not entitled to deduct the consideration given by NYSE for his shares in calculating his income tax liability when the RSUs vested.
Mr Moore was a director and minority shareholder in Wombat Financial Software Inc (Wombat). In March 2008 upon the company being acquired by NYSE he was granted circa. 150 000 RSUs. It was common ground that the RSUs were employment-related securities options and that an income tax liability would arise when the options vested. ITEPA 2003 s 480 provides...
