NIM06851 - Class NICs: International - Securities options
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Option granted whilst in the UK
When an employee exercises an option to acquire employment-related securities, such as shares, a charge to UK income tax arises on an amount treated as employment income. The same amount treated as employment income is also treated as earnings liable for Class 1 NICs - see NIM06825. The amount of tax chargeable may be subject to a Double Taxation Agreement although these agreements do not have any application for NICs. However, there are Social Security rules that apply to people coming to work in the UK or going abroad to work which can have an impact on the NICs treatment.
UK NICs liability can be affected by: