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

Section 41A: the relevant period

Section 41B defines the "relevant period" used to determine how employment income from employment-related securities is taxed under the remittance basis, reflecting the fact that the period over which value from such securities is earned varies depending on the type of securities arrangement involved.

• For restricted securities and convertible securities, the relevant period runs from the date the securities were acquired to the date of the chargeable event (such as a restriction being lifted or a conversion taking place).
• For securities acquired below market value, the relevant period depends on how they were acquired: if through an employment-related securities option, it runs from option acquisition to the earlier of the chargeable event or option vesting; otherwise, it is the year starting on the date the securities were acquired at undervalue.
• For securities disposed of above market value and for post-acquisition benefits from securities, the relevant period is simply the tax year in which the chargeable event occurs.
• For employment-related securities options, the relevant period runs from the date the option was acquired to the earlier of the chargeable event or the date the option first becomes exercisable (i.e. vests).