»Ê¹ÚÌåÓýapp

With the removal of ITEPA03/S21 and the consequential changes to Sections 421E(1) and 474(1) of the same Act by Finance Act 2008 from 6 April 2008, Chapters 2, 3, 4 and 5 of Part 7 ITEPA now apply if the individual concerned is UK resident at the time of acquisition regardless of whether or not he or she is ordinarily resident (or UK domiciled).

»Ê¹ÚÌåÓýapp extension of the application of the aforementioned Chapters of Part 7 to employees who, when they acquire securities or options, are not ordinarily resident, demanded consideration of a means of recognising that some of the employment income that would be charged by Part 7 might relate to foreign duties. It was also felt appropriate that existing, informal recognition in this guidance of the remittance basis for Part 7 income from foreign duties for foreign employers by “non-domicilesâ€� should be recognised in statute. As a result, from 6 April 2008, new Chapter 5A of Part 2 of ITEPA 2003 applies the remittance basis to such employment income.

»Ê¹ÚÌåÓýapp guidance in this section is mainly concerned with the rules affecting internationally mobile employees (IMEs) acquiring options or securities on or after 6 April 2008. »Ê¹ÚÌåÓýapp guidance at ERSM161300 relates to the effect of tax treaties on UK tax treatment of employees acquiring options or securities both before and after 6 April 2008.

For detailed discussion of the date of commencement of the new rules, see ERSM160400