What is the purpose of section 433 of the Income Tax (Earnings and Pensions) Act 2003?

Section 433 imposes a duty to notify HMRC when chargeable events occur in relation to restricted shares that may trigger an income tax charge under section 427. These chargeable events include the death of the employee, a disposal of the shares, or the lifting of restrictions on the shares.

What is the deadline for notifying HMRC of a chargeable event on restricted shares under section 433?

The notification must be made within 92 days after the end of the tax year in which the chargeable event took place. For example, if an event occurred during the 2024–25 tax year ending 5 April 2025, the deadline for notification would be 6 July 2025. This replaced the earlier 30-day deadline.

Which chargeable events must be reported to HMRC under section 433?

Three chargeable events must be reported: the death of the employee holding the restricted shares, a disposal of the restricted shares, or the lifting of restrictions on those shares. These are the same events that can give rise to an income tax charge under section 427 of the Act.

How does the 92-day reporting deadline under section 433 compare to the previous deadline?

The 92-day reporting deadline represents a significant extension from the previous 30-day limit that applied under earlier legislation. This gives those responsible for reporting considerably more time to gather the necessary information and submit the notification to HMRC after the end of the relevant tax year.

Income Tax (Earnings and Pensions) Act 2003 section 433

Duty to notify events resulting in charges under section 427

Section 433 requires certain parties to notify HMRC when events occur that could trigger a tax charge on restricted shares under section 427.

When a chargeable event occurs in relation to restricted shares — such as the death of the employee, a disposal of the shares, or the lifting of restrictions — there is a duty to report this to HMRC.
The chargeable events that must be reported are the same three events that can give rise to an income tax charge under section 427: death, disposal, or removal of restrictions.
The deadline for providing this information is 92 days after the end of the tax year in which the chargeable event took place.
This reporting deadline represents an extension from the previous 30-day limit that applied under the earlier legislation, giving those responsible significantly more time to comply.

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