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Lars Sjumarken v HMRC

In Lars Sjumarken v HMRC [2015] UKFTT 375 (10 August 2015) the FTT found that shares released to an employee on the termination of his employment were restricted.

Mr Sjumarken was employed by BNP Paribas as an investment banker when his contract was terminated under a compromise agreement which provided for a termination payment the release of shares under BNP’s share incentive plan (SIP) and cash under BNP’s cash incentive plan. The issues in dispute were: the correct valuation of the SIP shares; whether they should be valued as ‘restricted’ shares; and whether Mr Sjumarken had provided consideration to BNP by giving up his long dated options.

The FTT noted that the intention of BNP had been that SIP shares granted to an employee who had been made redundant should vest immediately. However it also accepted Mr Sjumarken’s evidence that he had been told by a...

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