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HMRC internal manual

Employment Related Securities Manual

HM Revenue & Customs
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The relevant period - up to 5 April 2015: securities acquired for less than market value pursuant to securities option

Where the securities in question were acquired by virtue of the exercise of a securities option, the relevant period:

  • begins with the day of the acquisition of the option, and
  • ends with the day the option vests

(Note: an option “vests” at the time it is first capable of being exercised (ITEPA03/S41B(7)). See ERSM160760.)


Ian is working in France but knows he will shortly move to the UK with the same employer when, on 1 March 2009, he is granted an option to acquire securities. He is not resident in the UK for tax purposes for 2008/09. In the next tax year he moves to the UK as planned. He is R/NOR for 2009/10 and remains so until exercise of the option 2 years later. He claims the remittance basis under section 809B ITA 2007 throughout his stay in the UK.

Ian is not within Chapter 5 as he was not UK-resident in the year he was granted the option. He is within Chapter 3C, as he is UK-resident in the year he acquires shares on exercise of his option.

The relevant period runs from the date the option is granted to the date on which the option is first capable of being exercised (and not, if later, the date on which exercise occurs).

If Ian had been awarded his option without prior knowledge of his move to the UK, then a charge under Chapter 3C would not be pursued. See ERSM70410.