Restricted securities: introduction
ERSM20010 describes the ways in which employers seek to incentivise and reward their employees with securities. The most frequently used are those described as ‘restricted’, ‘conditional’ or ‘forfeitable’. A special regime for Income Tax and NICs may apply to employment-related securities if they are restricted securities or a restricted interest in securities at the time of their acquisition. The current rules are set out in ITEPA03/S422 onwards.
There have been a number of changes to the way in which restricted securities have been treated over recent years. These are described in the following pages.
|Restricted securities acquired before 16 April 2003||ERSM30030|
|Conditional (forfeitable) securities acquired before 17 March 1998||ERSM30200|
|Conditional (forfeitable) securities acquired between 17 March 1998 and 15 April 2003||ERSM30210|
|Restricted or conditional (forfeitable) securities acquired on or after 16 April 2003 - chargeable event before 1 September 2003||ERSM30250|
|Restricted securities acquired on or after 16 April 2003 - chargeable event on or after 1 September 2003||ERSM30300|