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

Taxable specific income: internationally mobile employees etc.

Section 41F sets out how employment-related securities income is taxed for individuals who are internationally mobile, by splitting total securities income into a UK-taxable portion and a foreign portion, and applying the remittance basis where appropriate.

• The section applies when an individual has employment income from employment-related securities and meets at least one international mobility condition — being non-UK resident, on the remittance basis, or having a split year — during any part of the relevant period
• Taxable specific income on the arising basis is calculated by deducting the foreign element of the securities income from the total securities income, where the foreign element comprises both chargeable and unchargeable foreign securities income
• Any chargeable foreign securities income that is remitted to the UK becomes taxable specific income in the year of remittance, regardless of whether the individual still holds the relevant employment at that time
• For remittance basis purposes, the relevant securities or options are treated as deriving from the chargeable foreign securities income, unless the individual disposes of them for consideration equal to or exceeding market value, in which case the consideration itself is treated as deriving from that income