ÑÇÖÞÉ«ÇéÍø

Specific income tax rules (in sections 471–484 of the Income Tax (earnings and Pensions) Act 2003 (Part 7, Chapter 5) (ITEPA 2003)) apply to securities options that are employment-related. These are the rules that typically bring unapproved share options within the charge to income tax.

For further general information on unapproved options, see Practice Note: Unapproved share options. For further information on employment-related securities, see Practice Note: What is an employment-related security?

Alternative rules apply to tax-advantaged share options such as: Enterprise management incentives (EMI) schemes, save as you earn (SAYE) schemes and company share option plans (CSOPs). For further details of the tax treatment of these share options, see Practice Notes:

1. •

   Enterprise management incentives (EMI)—income tax and NIC treatment of options

2. •

   EMI—CGT, including business asset disposal relief and corporation tax relief

3. •

   CSOP—income tax and NIC treatment of options

4. •

   CSOP—CGT treatment and corporation tax treatment

5. •

   SAYE—income tax and NIC treatment of options, and

6. •

   SAYE—capital gains tax treatment of options

This Practice Note explains the tax treatment of unapproved share options,