Part 2

Employment income: charge to tax
CHAPTER 5B

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

Section 41F: the relevant period
41G
1
“The relevant period” is to be determined as follows.
2
In the case of an amount that counts as employment income by virtue of Chapter 2 of Part 7 (restricted securities) (other than where subsection (4) applies) or Chapter 3 of that Part (convertible securities), the relevant period—
a
begins with the day of the acquisition, and
b
ends with the day of the chargeable event.
3
In the case of an amount that counts as employment income by virtue of section 446B (securities with artificially depressed market value: charge on acquisition), the relevant period is the tax year in which the acquisition occurs.
4
In a case within subsection (1)(aa) or (b) of section 446E (securities with artificially depressed market value: charge on restricted securities) where an amount counts as employment income by virtue of that section, the relevant period—
a
begins at the beginning of the tax year in which the chargeable event is treated as occurring, and
b
ends with the day on which the chargeable event is treated as occurring.
5
In the case of an amount that counts as employment income by virtue of section 446L (securities with artificially enhanced market value), the relevant period—
a
begins at the beginning of the tax year in which the valuation date (within the meaning of that section) falls, and
b
ends with the valuation date.
6
In the case of an amount that counts as employment income by virtue of section 446U (securities acquired for less than market value: discharge of notional loan) or 446UA (avoidance cases in respect of such securities)—
a
if the relevant securities were acquired by virtue of the exercise of a securities option (“the option”), the relevant period—
i
begins with the day of the acquisition of the option, and
ii
ends with the day the option vests, and
b
otherwise, the relevant period is—
i
the tax year in which the notional loan (within the meaning of Chapter 3C of Part 7) is treated as made, or
ii
if the chargeable event occurs in that year, the period beginning at the beginning of that year and ending with the day of that event.
7
In the case of an amount that counts as employment income by virtue of—
a
Chapter 3D of Part 7 (securities disposed of for more than market value), or
b
Chapter 4 of that Part (post-acquisition benefits from securities),
the relevant period is the tax year in which the chargeable event occurs.
8
In the case of an amount that counts as employment income by virtue of Chapter 5 of Part 7 (employment-related securities options), the relevant period—
a
begins with the day of the acquisition, and
b
ends with the day of the chargeable event or, if earlier, the day the relevant securities option vests.
9
If the relevant period determined in accordance with subsections (2) to (8) would not, in all the circumstances, be just and reasonable, the relevant period is to be such period as is just and reasonable.
10
In this section “
the acquisition
” has the same meaning as in Chapters 2 to 4 or Chapter 5 of Part 7 (see section 421B or 471).
11
For the purposes of this section an option “vests”—
a
when it becomes exercisable, or
b
if earlier, when it becomes exercisable subject only to a period of time expiring.
12
See section 41F(11) for the definitions of “the chargeable event”, “the relevant securities” and “the relevant securities option”.
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)