Where the securities in question were acquired by virtue of the exercise of a securities option, the relevant period:
(Note: an option “vests” at the time it is first capable of being exercised (ITEPA03/S41B(7)). See ERSM160760.)
Ian is working in France but knows he will shortly move to the
UK with the same employer when, on 1 March 2009, he is granted an
option to acquire securities. He is not resident in the UK for tax
purposes for 2008/09. In the next tax year he moves to the UK as
planned. He is R/NOR for 2009/10 and remains so until exercise of
the option 2 years later. He claims the remittance basis under
section 809B ITA 2007 throughout his stay in the UK.
Ian is not within Chapter 5 as he was not UK-resident in the
year he was granted the option. He is within Chapter 3C, as he is
UK-resident in the year he acquires shares on exercise of his
option.
The relevant period runs from the date the option is granted
to the date on which the option is first capable of being exercised
(and not, if later, the date on which exercise occurs).
If Ian had been awarded his option without prior knowledge
of his move to the UK, then a charge under Chapter 3C would not be
pursued. See
ERSM70410.
