ERSM30010 | Restricted securities: introduction

ERSM20010 describes the ways in which employers seek to incentivise and reward their employees with securities. The most frequently used are those described as ‘restricted’, ‘conditional’ or ‘forfeitable’. A special regime for Income Tax and NICs may apply to employment-related securities if they are restricted securities or a restricted interest in securities at the time of their acquisition. The current rules are set out in ITEPA03/S422 onwards.

There have been a number of changes to the way in which restricted securities have been treated over recent years. These are described in the following pages.