ERSM10060 - Introduction

Where to find the legislation

Since 1966, there have been a number of provisions to deal with employment-related securities, many of which were introduced to combat avoidance of income tax and NICs. The main provisions were in Finance Acts 1988 and 1998, subsequently consolidated into ICTA 1988. In 2003, the Tax Law Rewrite programme rewrote these provisions as the Income Tax Earnings & Pensions Act 2003 (ITEPA). Shortly after this, the tax regime was significantly reformed in Schedule 22 of Finance Act 2003, to provide a fairer, more coherent and consistent regime and deal with further extensive avoidance. As a result, ITEPA was amended to include the FA 2003 changes. ITEPA was amended again with further anti- avoidance provisions in Finance Act 2004. In Finance Act 2005, a special provision was introduced to provide relief from income tax and NICs on employment reward arising from the transfer of intellectual property into university spinout companies.

The table at ERSM10070 shows the main changes