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

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

  • Internationally mobile employees and securities options (pre-6 April 2015) [Archived]
  • Pre 6-April 2015 position
  • Scope of UK income tax on securities options
  • Securities options acquired on or after 6 April 2008—UK residents
  • Securities options acquired before 6 April 2008—R/OR employee or director
  • Securities option acquired before 6 April 2008—R/NOR employee or director
  • Consequences of the Securities Option Rules not applying—Chapter 3C charge
  • 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ARCHIVED: This Practice Note has been archived and is not maintained.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 options 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 securities options granted both 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 options only accrues in the UK for the period from grant to vesting 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). The major change implemented by FA 2014 was that securities options charges could arise even if the employee or director