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HMRC internal manual

Employment Related Securities Manual

International from 6 April 2015: ascertaining chargeable and unchargeable foreign securities income - from 6 April 2015: s26A employees - duties partly outside UK

Where in a tax year:

  • the conditions in ITEPA03/S41H(7) are all met;
  • some, but not all the duties of the individual’s employment are performed outside the UK, and
  • the relevant period falls wholly or partly within that year

then the securities income accruing during that part of the relevant period is apportioned on a just and reasonable basis between the UK and non-UK duties. That proportion of the securities income which is attributed to the non-UK duties is then treated as chargeable foreign securities income, and is therefore only taxable if remitted to the UK.

In the normal case, where the duties performed in the UK and overseas are broadly similar and there are no other special factors, HMRC would accept apportionment by reference to the number of workdays spent in each location as giving a just and reasonable result.