ERSM20310 - Employment-related securities and options: exclusions: residence and split year treatment (up to 5 April 2015)

From 6 April 2015 the residence exclusions in Part 7 of ITEPA03 have been removed. See ERSM160000 and in particular ERSM162000.

Therefore the rest of this page relates to the period up to 5 April 2015.

For a general discussion of split year treatment, Extra Statutory Concession A11 and its replacement by legislation in Schedule 45 of Finance Act 2013, see HMRC바카라 사이트™s Guidance Note on the Statutory Residence Test -.

Finance Act 2013 gave legislative effect to Extra-Statutory Concession A11, so that, where an individual qualifies for split-year treatment by falling within one of the Cases in Part 3 of Schedule 45, in the overseas part of that tax year, he or she is taxed as if a non-resident.

For years up to 5 April 2013, ESC A11 is applied for the purposes of the Part 7 residence rules in ITEPA03/S421E and ITEPA03/S474(1), except that ITEPA03/S421E(2) should be read in relation to the whole of the final year of residence in the UK without regard to ESC A11.

This means that, if employment-related securities are acquired in the non-resident part of a year of departure, Chapters 3A to 3D will still apply if there are general earnings subject to a UK income tax charge in any part of the year.

ITEPA03/S421E and ITEPA03/S474 were amended by FA2013 to replicate the application of ESC A11 to Part 7.

If an acquisition of employment-related securities (or employment-related securities options) occurs in the UK part of a split year, the Part 7 residence rules apply in the same way as they do in a year that is not split.

If an acquisition of employment-related securities (or employment-related securities options) occurs in the overseas part of a split year, then Chapters 2, 3, 4 and 5 do not apply to them.

However, as with ESC A11, ITEPA03/S421E(2A) ensures that, in the overseas part of a year of departure, Chapters 3A to 3D do apply if there are general earnings subject to a UK income tax charge in any part of the year.

See ERSM20360 for the interaction of split year treatment with the rules for former and prospective employments.