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

Section 41F: chargeable and unchargeable foreign securities income

Section 41H sets out rules for determining how much of an internationally mobile employee's employment-related securities income counts as "chargeable foreign securities income" (taxed on the remittance basis) or "unchargeable foreign securities income" (outside the scope of UK income tax altogether).

• Securities income is treated as accruing evenly across each day of the relevant period, and each day's portion is then classified according to the tax rules that applied to the individual during that part of the period
• Income is "chargeable foreign securities income" where the remittance basis applied, the individual worked for a foreign employer, duties were performed wholly outside the UK, and the individual did not meet the three-year non-residence requirement — meaning it is taxable only if and when remitted to the UK
• Income is "unchargeable foreign securities income" — and therefore completely outside the UK tax charge — for parts of the relevant period falling in tax years when the individual was not UK resident, or falling in the overseas part of a split year, to the extent duties were performed outside the UK
• Where duties were performed partly in and partly outside the UK, the income must be apportioned on a just and reasonable basis, with only the overseas portion qualifying as chargeable or unchargeable foreign securities income as appropriate