2015 No. 360
Income Tax

The Finance Act 2014, Schedule 9 (Employment-related Securities etc.) (Consequential etc. Amendments) Regulations 2015

Made
Laid before the House of Commons
Coming into force
The Treasury, in exercise of the powers conferred by section 52 of, and paragraphs 49 and 50 of Schedule 9 to, the Finance Act 20141, make the following Regulations:

Citation and commencement1.

(1)

These Regulations may be cited as the Finance Act 2014, Schedule 9 (Employment-related Securities etc.) (Consequential etc. Amendments) Regulations 2015.

(2)

These Regulations come into force on 6th April 2015.

Amendment of ITEPA 20032.

In section 431B of ITEPA 20032 (securities acquired for purpose of avoidance)—

(a)

the words after “if” become paragraph (a), and

(b)

at the end of that paragraph insert “, and” and then—

“(b)

at the time of the acquisition, the earnings from the employment are (or would be if there were any) general earnings to which any of the charging provisions of Chapters 4 and 5 of Part 2 applies.”.

Harriett Baldwin
Gavin Barwell
Two of the Lords Commissioners of Her Majesty’s Treasury
EXPLANATORY NOTE
(This note is not part of the Regulations)

Part 1 of Schedule 9 to the Finance Act 2014 amends how employment related securities (“ERS”) acquired by internationally mobile workers are charged under Part 7 of the Income Tax (Earnings and Pensions) Act 2003 (“ITEPA”).

These Regulations use a power contained in Part 4 of Schedule 9 to the Finance Act 2014 to make a consequential amendment to section 431B ITEPA. The consequence of this amendment is that section 431B will only apply to ERS which are within the scope of UK earnings at the time of acquisition.

A Tax Information and Impact Note covering this instrument was published on 10th December 2013 alongside the draft Finance Bill 2014 and is available on the website at https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins. It remains an accurate summary of the impacts that apply to this instrument.