ERSM30010 - Restricted Securities

Introduction

ERSM20010 describes the ways in which employers seek to incentivise and reward their employees with securities. The most frequently used are those described as “restricted”, “conditional” or “forfeitable”. A special regime for Income Tax and NICs may apply to employment-related securities if they are restricted securities or a restricted interest in securities at the time of their acquisition. The current rules are set out in ITEPA03/S422 onwards.

There have been a number of changes to the way in which restricted securities have been treated over recent years. These are described in the following pages.