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HMRC internal manual

Employment Related Securities Manual

From
HM Revenue & Customs
Updated
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International from 6 April 2015: ascertaining chargeable and unchargeable foreign securities income - from 6 April 2015: s26A employees - conditions to be met

An employee who is not domiciled in the UK and meets the requirements of section 26A can have chargeable foreign securities income in a tax year if all the following conditions in ITEPA03/S41H(7) are met:

  • section 809B, 809D or 809E of ITA 2007 applies to the individual for the year (that is, they are taxed on the remittance basis);
  • the individual meets the requirements of section 26A; and
  • some or all the duties of the employment are performed outside the UK

ITEPA03/S26A and years before 2013/14

Finance Act 2013 made changes to the residence rules, with effect from 6 April 2013, removing the concept of “ordinary residence” from the Taxes Acts. For ITEPA03/S22, the condition of the employee being ordinarily UK resident was replaced by the condition of not meeting “the requirement of section 26A” and for ITEPA03/S26, the condition of the employee being not ordinarily UK resident was replaced by the condition of meeting “the requirement of section 26A”

Where relevant periods (ERSM162500) include years prior to 6 April 2013, references in the provisions of ITEPA03/S41H(4)(b) and (7)(b) to meeting or not meeting the requirements of s.26A should be read as being, respectively, not ordinarily UK resident or ordinarily UK resident for those years.