UITF Abstract 25 National Insurance Contributions on Share Option Gains
Issued July 2000. Effective accounting periods ending on or after 22 September 2000.
UITF Abstract 25 has been superseded by FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2015. For more information visit:
Synopsis
Provision should be made for National Insurance contributions on outstanding share options that are expected to be exercised using the latest enacted National Insurance rate applied to the difference between the market value of the underlying shares at the balance sheet date and the option exercise price. This should be allocated over the period from the date of grant to the end of the performance period. If there is no performance period full provision should be made immediately.
All amounts in respect of these National Insurance contributions should be charged to the profit and loss account.
Last updated 21 June 2015