Internationally mobile employees with securities options
Produced in partnership with Baker McKenzie LLP
Internationally mobile employees with securities options

The following Share Incentives guidance note Produced in partnership with Baker McKenzie LLP provides comprehensive and up to date legal information covering:

  • Internationally mobile employees with securities options
  • Introduction
  • Treatment since 6 April 2015
  • Securities options and conditional share awards
  • Income tax liabilities
  • National insurance liabilities
  • Examples


This Practice Note discusses the taxation of internationally mobile employees and directors in relation to securities options (options) charged to tax within Chapter 5 of 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 pay-as-you-earn tax (PAYE) and National Insurance contributions (NICs) liabilities.

For information about how these rules apply to employment-related securities other than options, see Practice Note: Internationally mobile employees with employment-related securities.

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:

  1. UK residents going overseas to work

  2. overseas residents coming to the UK to work, and

  3. UK and overseas residents who move in and out of the UK

For details of the PAYE and NICs implications for the employing company, see Practice Note: PAYE—readily convertible assets, intermediaries and jurisdictional scope.

There are also