(CSOP) international considerations

You can be granted options under a CSOP if you are an internationally mobile employee. The UK tax treatment of such options depends on whether the conditions for income tax relief have been met.

There will normally be UK income tax implications only if you were resident in the UK at the date of grant, or the option was granted in respect of duties carried out in the UK.

Capital gains tax may arise where employees are either resident or ordinarily resident in the UK at the date of disposal or if they were within the scope of the temporary non-residents rules contained in Section 10, Taxation of Chargeable Gains Act (TCGA) 1992.

Further detail on the taxation of Share Options for Internationally Mobile Employees can be found at HMRC Tax Bulletin 55/2001 and Tax Bulletin 76/2005.

No NIC liability arises where there is a non-qualifying exercise of an option granted under a CSOP.

If you are unsure whether you need to complete the Share Scheme pages of the Self Assessment Return then further guidance can be found in Notes on Share Schemes (PDF 220K)

You may also need to complete the Capital Gains Pages of your Tax Return when you have disposed of shares you acquired by The exercise of a CSOP option. For further detailed guidance see Notes on Share Schemes (PDF 220K)

General guidance on residence and Domicile can be found in IR20 Residents & non-residents-liability to tax in the UK (PDF 640K).