HMRC confirms hardline approach for when securities fall within employment tax anti-avoidance regime
HMRC has today updated its guidance on the UK's employment-related securities (ERS) rules which can tax, as employment income, benefits arising to employees from securities deriving from their employment. For these purposes, directorships count as employment and, broadly, securities derive from employment if the right or opportunity to acquire them is, actually, available by reason of the employee's employment. On top of this factual causation test, there is a long-standing deeming provision which, essentially, says that if a security is made available by a person's employer or a person connected with the employer, it will be an ERS (unless awarded due to domestic, family or personal relationships).