The following Share Incentives guidance note Produced in partnership with Baker McKenzie LLP provides comprehensive and up to date legal information covering:
This Practice Note discusses the taxation of internationally mobile employees and directors in relation to employment-related securities (ERS) charged to tax within Part 7 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003). The scope of the charge to income tax is important not only for the individuals themselves (in determining their income tax liabilities) but also for employing companies in determining the associated PAYE and National Insurance (NICs) liabilities.
This Practice Note considers only the UK income tax and NICs position. There may also be tax implications in other jurisdictions with which the individual or employing company is connected. These non-UK tax considerations are outside the scope of this Practice Note and local law advice should be taken.
Internationally mobile employees and directors are those individuals who work in different jurisdictions around the world (whether concurrently or consecutively). They include:
UK residents going overseas to work
overseas residents coming to the UK to work, and
UK and overseas residents who move in and out of the UK
This note considers the jurisdictional scope of the UK income tax charges on ERS.
For details of the PAYE and NICs implications for the employing company, see Practice Notes: PAYE—readily convertible assets, intermediaries and jurisdictional scope—Jurisdictional scope and NICs implications of employment-related securities and securities options.
There are also registration and reporting obligations
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.