ERSM20280 - Employment-related Securities and Options

Exclusions: 7 year rule

Securities cease to be “employment-related”, seven years after the employee leaves employment with any of:

• the employer, or a person connected with the employer, and
• the company which issued the securities, or a person connected with the company

(ITEPA03/S421B (7)).

Options not exempt

This rule does not exempt employment-related securities options from taxation and if these are exercised more than seven years after leaving there is still a chargeable event. However, the securities obtained by exercise will not be “employment-related”, so no post-acquisition charges can subsequently occur.