The following Employment Tax guidance note Produced by Tolley in association with Karen Speight provides comprehensive and up to date tax information covering:
The current rules relating to the UK tax treatment of employment related securities where internationally mobile employees are involved came into force on 5 April 2015. Previously, tax liability had depended on where the employee was situated when the option / shares were awarded. Under the current rules, tax liability is calculated by reference to where the employee is resident and working during the vesting period. This effectively aligns UK tax treatment with international practice as well as equalising the position for UK employees and internationally mobile employees working in the UK.
This guidance note looks at how the rules on taxation of employment related securities, the remittance basis and using mixed funds all interact.
The Employment-related securities ― overview guidance note sets out details on what constitutes employment related securities and the circumstances in which a tax charge may arise in connection with them.
Where there is a chargeable event, the starting point in ascertaining liability is straightforward ― an individual will be subject to UK tax unless and to the extent that ITEPA 2003, Part 2, Chapter 5B applies.
Chapter 5B applies if any part of the relevant period:
falls within a tax year when the employee is subject to the remittance basis
is in a tax year for which the individual is not UK resident for tax purposes, or
is within the overseas part of a tax year that is split between UK and non-UK residency
In other words, if for part of the relevant period, the employee is non-resident or is resident but the remittance basis applies, then Chapter 5B applies. In these circumstances, any ‘foreign securities income’ may, depending on the circumstances, be either totally outside the UK tax net or outside the UK tax net to the extent it is not remitted.
The ‘relevant period’ depends on the nature of the shares or share rights acquired. Detailed rules are set out in the Employment-related securities: internationally
**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.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
IntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeWithholding tax may be reduced under double tax treaties (DTT) or European directives, both of which may be subject to making a formal claim.This guidance note outlines the rules for UK withholding tax, and
This guidance note explains the general rules surrounding the availability of indexation allowance on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview of the general position regarding company disposals, please refer to
This guidance note provides details of quarterly instalment payments (QIPs) for corporation tax purposes and which companies need to pay their tax liabilities in this manner.Generally, corporation tax is payable nine months and one day after the end of the relevant accounting period. However, large
The rent-a-room scheme was introduced in the early 1990s to encourage homeowners to take in lodgers.Fundamentally, the rent-a-room scheme is a relief which means that the rent received by an individual from a lodger (up to a prescribed limit) can be exempt from income tax. If the gross rents are
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.