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.
| Restricted securities acquired before 26 October 1987 | ERSM30020 |
| Restricted securities acquired between 26 October and 15 April 2003 | ERSM30030 |
| Conditional (forfeitable) securities acquired before 17 March 1998 | ERSM30200 |
| Conditional (forfeitable) securities acquired between 17 March 1998 and 15 April 2003 | ERSM30210 |
| Restricted or conditional (forfeitable) securities acquired on or after 16 April 2003 – chargeable event before 1 September 2003 | ERSM30250 |
| Restricted securities acquired on or after 16 April 2003 – chargeable event on or after 1 September 2003 | ERSM30300 |
