Part 2Employment income: charge to tax

F1Chapter 5CRelief for new residents on foreign employment income

Qualifying foreign employment income

41WQualifying foreign securities income

(1)

For the purpose of this Chapter, “securities income” is an amount that counts under Chapters 2 to 5 of Part 7 (employment-related securities etc) as employment income in respect of an employment (the “relevant employment”).

(2)

Securities income is “qualifying securities income”—

(a)

if the duties of the relevant employment are performed wholly or partly outside the UK during the qualifying year, and

(b)

to the extent that it—

(i)

accrues during the qualifying year, or

(ii)

if the qualifying year is a split year as respects the individual, accrues during the UK part of the year.

(3)

To determine when securities income accrues treat an equal amount of the securities income as accruing on each day of the relevant period determined in accordance with section 41G.

(4)

But if the proportion of the securities income that would be regarded as qualifying securities income by virtue of subsection (3) is not, having regard to all the circumstances, just and reasonable, the amount of the securities income that is qualifying securities income is such amount as is just and reasonable.

(5)

Qualifying securities income is wholly “qualifying foreign securities income” if the duties of the relevant employment are performed wholly outside the United Kingdom.

(6)

If some, but not all, of the duties of the relevant employment are performed outside the United Kingdom—

(a)

the qualifying securities income is to be apportioned (on a just and reasonable basis) between duties performed in the United Kingdom and duties performed outside the United Kingdom, and

(b)

the income apportioned in respect of duties performed outside the United Kingdom is qualifying foreign securities income.

(7)

But qualifying securities income from overseas Crown employment subject to United Kingdom tax is not qualifying foreign securities income.