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HMRC internal manual

Employment Related Securities Manual

From:
HM Revenue & Customs
Published
18 May 2016
Updated:
5 May 2026 - See all updates

ERSM20000 - Employment-related securities and options: contents

  1. ERSM20010
    Overview
  2. ERSM20020
    Principles
  3. ERSM20030
    Employers' Costs
  4. ERSM20100
    Scope of Legislation

Definition of employment-related securities

  1. ERSM20110
    What are securities
  2. ERSM20120
    Shares
  3. ERSM20130
    Insurance Contracts
  4. ERSM20140
    Loan stock
  5. ERSM20150
    Warrants
  6. ERSM20160
    Certificates in respect of securities held by others
  7. ERSM20170
    Units in a collective investment scheme
  8. ERSM20180
    Futures
  9. ERSM20185
    Options and futures: options
  10. ERSM20190
    Contracts for differences
  11. ERSM20191
    Alternative Finance Investment Bond: Islamic Finance bonds or ‘sukuk’
  12. ERSM20192
    What are securities: Long Term Incentive Plan (LTIP)
  13. ERSM20193
    What are securities: RSUs and dividend equivalents
  14. ERSM20194
    What are securities: RSUs and dividend equivalents: examples
  15. ERSM20195
    What are securities: Stock Appreciation Rights (SARs)
  16. ERSM20196
    What are securities: phantom share plans
  17. ERSM20197
    ‘Interest’ in securities – ITEPA03/S420 (8)
  18. ERSM20200
    What are not securities
  19. ERSM20205
    Options used for avoidance
  20. ERSM20210
    By reason of employment
  21. ERSM20215
    ‘by reason of employment’ - The deeming provision - HMRC v Vermilion Holdings Ltd
  22. ERSM20220
    By reason of employment - exception for family or personal relationships
  23. ERSM20230
    Employment-related securities and employment-related securities options

Who is within the charge?

  1. ERSM20240
    Who is within the charge
  2. ERSM20250
    Associated person and 'the box'

Exclusions from charge

  1. ERSM20260
    Exclusions from charge
  2. ERSM20270
    Exclusions - death
  3. ERSM20280
    Exclusions - 7 year rule
  4. ERSM20290
    Exclusions - certain control situations
  5. ERSM20300
    Exclusions - residence (up to 5 April 2015)
  6. ERSM20310
    Exclusions - split-year treatment (up to 5 April 2015)
  7. ERSM20350
    Exclusions - disability
  8. ERSM20360
    Exclusions - former and prospective employments
  9. ERSM20370
    Exclusions - public offers
  10. ERSM20380
    Exclusions - tax-advantaged share schemes

Definitions and miscellaneous

  1. ERSM20390
    Negative amounts treated as nil
  2. ERSM20400
    Market value
  3. ERSM20410
    Market value - cashless exercise
  4. ERSM20420
    Time of acquisition
  5. ERSM20430
    'Consideration'
  6. ERSM20440
    Replacement or additional securities
  7. ERSM20450
    Rights issues

Money's worth charge on acquisition

  1. ERSM20500
    Money's worth charge
  2. ERSM20510
    Weight v Salmon (19TC174)
  3. ERSM20520
    Ede v Wilson (26TC381)
  4. ERSM20530
    Ways of getting shares
  5. ERSM20540
    When shares are acquired for money's worth charge