ERSM20300 - Employment-related Securities and Options

Exclusions: residence

Chapters 2, 3 & 4

The following chapters only apply if, when the employment-related securities are acquired, the employee is both resident and ordinarily resident in the UK (the old category of employees in Case I of Schedule E – see SE40101):

• Chapter 2 restricted securities
• Chapter 3 convertible securities
• Chapter 4 post-acquisition benefits from securities

(see ITEPA03/S421E (1)).

Chapter 5

Chapter 5 (securities options) only applies if, when the employment-related securities option is acquired, the employee is both resident and ordinarily resident in the UK (the old category of employees in Case I of Schedule E). See ITEPA03/S474 (1).

Chapters 3A, 3B, 3C & 3D

The following chapters only apply to employment-related securities if, when they are acquired, the employee’s earnings from the employment were (or would have been if there had been any) general earnings to which any of the charging provisions of Chapter 4 or 5 of Part 2 ITEPA 2003 apply (the old categories of employees in Cases I, II or III of Schedule E):

• Chapter 3A securities with artificially depressed market value
• Chapter 3B securities with artificially enhanced market value
• Chapter 3C securities acquired for less than market value
• Chapter 3D securities disposed of for more than market value

See ITEPA03/S421E (2).

See also ERSM20440 for the rules relating to replacement or additional securities or options.