Income Tax (Earnings and Pensions) Act 2003 section 41A

Taxable specific income from employment-related securities: effect of remittance basis

Section 41A sets out how to calculate the taxable specific income arising from employment-related securities when the remittance basis applies to an individual.

• The section applies where an amount counts as employment income from employment-related securities and any part of the relevant period falls within a tax year for which the remittance basis applies to the individual.
• Taxable specific income is calculated using the formula SI minus FSI, where SI is the total securities income and FSI is the portion of that income classified as foreign securities income.
• Any foreign securities income that is remitted to the UK becomes taxable specific income for the tax year in which it is remitted, regardless of whether the individual still holds the employment at that point.
• Special rules determine what is treated as deriving from the foreign securities income for remittance purposes, depending on whether the chargeable event is a disposal of the securities or some other event.