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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: examples: “not s26A” and “s26A” employees

As mentioned at ERSM160200, Finance Act 2013 made changes to the taxation rules relating to residence from 6 April 2013, removing the concept of “ordinary residence” from the Taxes Acts. For ITEPA03/S26, the condition of the employee being not ordinarily resident (or “NOR”) was replaced by the condition of meeting “the requirement of section 26A”.

In addition, from 6 April 2013, the remittance basis may only be claimed by individuals not domiciled in the UK (but see transitional arrangements at ERSM160200). Before that date the remittance basis was available to employees who met certain conditions in respect of their employment income where they were, on the one hand not domiciled but ordinarily resident in the UK, or, on the other hand, not ordinarily resident in the UK. From 6 April 2013 those two categories were replaced by those employees who are not domiciled in the UK and do not meet the requirements of section 26A and those who are not domiciled in the UK and do meet the requirements of section 26A.

As a shorthand, the foregoing examples refer to employees who are not domiciled in the UK and do not meet the requirements of section 26A as “not s26A employees” and employees who are not domiciled in the UK and do meet the requirements of section 26A as “s26A employees”.