Part 2

Employment income: charge to tax
CHAPTER 5B

Taxable specific income from employment-related securities etc: internationally mobile employees

Taxable specific income: internationally mobile employees etc
41F
1
This section applies if—
a
an amount counts under Chapters 2 to 5 of Part 7 (employment-related securities
etc
) as employment income of an individual for a tax year (“the securities income”) in respect of an employment (“
the relevant employment
”), and
b
one or more of the international mobility conditions is met in relation to the individual (see subsection (2)).
2
The “international mobility conditions” are—
a
that any part of the relevant period (see section 41G) is within a tax year for which section 809B, 809D or 809E of ITA 2007 (remittance basis)
applied
to the individual;
b
that any part of the relevant period is within a tax year for which the individual is not
UK
resident;
c
that any part of the relevant period is within the overseas part of a tax year that is a split year with respect to the individual.
3
An amount equal to—
SI − FSI
is an amount of “taxable specific income” from the relevant employment for the tax year mentioned in subsection (1)(a).
4
In subsection (3)—
a
SI
is the amount of the securities income, and
b
FSI is the amount of the securities income that is “foreign”.
5
The amount of the securities income that is “foreign” is the sum of any chargeable foreign securities income and any unchargeable foreign securities income (see sections 41H to 41L).
6
The full amount of any chargeable foreign securities income which is remitted to the United Kingdom in a tax year is an amount of “taxable specific income” from the relevant employment for that year.
7
Subsection (6) applies whether or not the relevant employment is held when the chargeable foreign securities income is remitted.
8
For the purposes of Chapter A1 of Part 14 of ITA 2007 (remittance basis), treat the relevant securities or relevant securities option as deriving from the chargeable foreign securities income.
9
But where—
a
the chargeable event is the disposal of the relevant securities or the assignment or release of the relevant securities option, and
b
the individual receives consideration for the disposal, assignment or release of an amount equal to or exceeding the market value of the relevant securities or relevant securities option,
for the purposes of that Chapter treat the consideration (and not the relevant securities or relevant securities option) as deriving from the chargeable foreign securities income.
10
See Chapter A1 of Part 14 of ITA 2007 for the meaning of “remitted to the United Kingdom”.
11
In this section and section 41G—
- “
the chargeable event
” means the event giving rise to the securities income, and
- “the relevant securities” or “
the relevant securities option
” means the employment-related securities or employment-related securities option by virtue of which the amount mentioned in subsection (1)(a) counts as employment income.
Pt. 2 applied (E.W.S.) (31.3.2017) by The Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017 (S.I. 2017/353), reg. 1(1), Sch. 1 para. 4(3) (with reg. 2(4)(5))
Pt. 2 Ch. 5B substituted (with effect in accordance with Sch. 3 para. 7(3), Sch. 9 para. 48 of the amending Act) for Pt. 2 Ch. 5A by virtue of Finance Act 2014 (c. 26), Sch. 9 paras. 5, 47
Pt. 2 applied (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), ss. 969(4)(a), 1329(1) (with Sch. 2 Pts. 1, 2)
S. 41F applied (20.3.2025) by Finance Act 2025 (c. 8), Sch. 10 para. 2(3)
Word in s. 41F(2)(a) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 40(4), Sch. 9 para. 3(8)