This Practice Note explains the circumstances in which income tax (and NICs) charges can arise for an employee or director in relation to restricted securities that are employment-related, including upon the lifting, variation or expiry of the restrictions, or the disposal of the restricted securities. The note also sets out how the director or employee and the employing company may jointly elect for an alternative tax treatment using section 425 elections, 431 elections or 430 elections. This Practice Note was produced in partnership with Dan Sharman of Shoosmiths LLP.