The securities income is to be treated as accruing equally on
each day of the relevant period (ITEPA03/S41C(2)).
This should not be read as a requirement to compute the
apportionment of securities income between what is foreign and what
is not on the basis of the circumstances of every day during the
relevant period. Rather, because the apportionment rules of section
41C treat each tax year within the relevant period separately, the
concept of daily accrual means that securities income is regarded
as relating in equal proportions to each year or part of a year
within the relevant period.
The statute at ITEPA03/S41C and S41D requires that for both
categories of employees who are eligible for the remittance basis
– those who are not ordinarily resident in the UK (NOR) and
those who are ordinarily resident but not domiciled in the UK
– the securities income will be apportioned between what is
foreign and what is not.
For non-domiciled employees the apportionment will be made
in accordance with ITEPA03/S41C(3) and (4) and S41D. See the
guidance at
ERSM160820 et seq. For NOR employees
the apportionment is governed by ITEPA03/41C(5) and (6). See the
guidance at
ERSM160840 et seq.
For both categories of employees, the way that the
apportionment is made is not set down in statute in any more detail
than is contained in sections 41C and 41D. HMRC would expect that a
split based on overseas and UK workdays will be the most commonly
used method of arriving at a just and reasonable apportionment, but
other methods will be acceptable if they achieve a just and
reasonable result. Most of the examples that follow use the
workdays method, assuming 48 5-day weeks in a year, allowing for 4
weeks’ holiday. If workdays are being used, and the facts of
any particular case require it, a different number of workdays may
be used, as appropriate.
