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HMRC internal manual

Residence, Domicile and Remittance Basis Manual

HM Revenue & Customs
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Remittance Basis: Introduction to the Remittance Basis: Transitional Provisions: Employment - related securities

Paragraph 91 Schedule 7 Finance Act 2008


Amendments made to ITEPA03/s431 by Finance Act 2008 mean that all individuals resident in the UK are within the scope of Chapters 2 to 4 of Part 7 ITEPA 2003, for employment-related securities acquired on or after 6 April 2008, except for employment-related securities pursuant to a securities option acquired before 6 April 2008.


The transitional rule provides that the time limit for making an election to opt out of Chapter 2 of Part 7 ITEPA 2003 under section 431 ITEPA 2003 is extended to 14 August 2008 where:

  • securities are acquired in the period 6 April 2008 to 31 July 2008 inclusive, and
  • Chapter 2 of Part 7 of ITEPA 2003 only applies because of changes made by Finance Act 2008.


This extended time limit ensures that individuals who were only brought within Chapter 2 following Finance Act 2008 could make an election once the Finance Act 2008 received Royal Assent.

For more detailed advice refer to Employment-Related Securities Manual ERSM160000 onwards.