326. Employment-related securities options.

A special tax regime in Part 7 Chapter 5 of the Income Tax (Earnings and Pensions) Act 20031 applies to 'employment-related securities options', which are options that have been acquired by reason of employment (former or prospective) of the option holder or any other person2. The grant of an employment-related securities options is exempted from tax that might otherwise arise on the recipient under section 62 (earnings)3 or the residual liability chapter of the benefits code4.

Instead, an income tax charge will arise when:


    (1)     securities are acquired under the option;


    (2)     the option is assigned or released; or