Internationally mobile employees and employment-related securities (pre-6 April 2015) [Archived]
Internationally mobile employees and employment-related securities (pre-6 April 2015) [Archived]

The following Tax guidance note provides comprehensive and up to date legal information covering:

  • Internationally mobile employees and employment-related securities (pre-6 April 2015) [Archived]
  • Pre-6 April 2015 position
  • Employment-related securities acquired on or after 6 April 2008
  • Employment-related securities acquired before 6 April 2008
  • Former and prospective employees and directors
  • Outbound employees or directors—UK residents leaving the UK
  • Inbound employees or directors—non-residents coming to the UK

ARCHIVED: This Practice Note has been archived and is not maintained.

Following recommendations of the Office of Tax Simplification and an HMRC consultation, the jurisdictional scope of the employment-related securities rules in relation to internationally mobile employees (and related corporation tax relief) changed from 6 April 2015. The applicable legislation from that date is contained in Schedule 9, Part 1 to the Finance Act 2014 (FA 2014). Those rules apply to chargeable events occurring on or after 6 April 2015 in relation to employment-related securities acquired before (arguably retrospectively) and after that date (the commencement provisions are in FA 2014, Sch 9, Pt 4). The post-6 April 2015 rules are more aligned with the general earnings charge (under section 62 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003)) so that, very broadly, from 6 April 2015, income in respect of securities will only accrue in the UK for the particular part of the relevant period (usually from acquisition to later chargeable event) in which the individual is UK resident or had UK duties (with relief for UK resident but non-domiciled individuals qualifying for overseas workday relief or taxable on the remittance basis in respect of duties wholly performed outside the UK for a foreign employer).

This Practice Note details the rules as they stood prior to the April 2015 change.