0T tax code changes

HMRC has announced that the 0T tax code must be applied to all payments including share-related payments made after a P45 has been issued.

This is a reversal of its announcement that from April 2011 the BR tax code, rather than the 0T tax code, would apply to shares or interests in shares which gave a more favourable outcome to the employee.

Now, however, following discussions with share plan administrators and issuer companies, HMRC has opted for simplicity aligning all post-employment payments under the same tax code.

For more information see our member Postlethwaite’s explanation of the changes.