ERSM165220 - International from 6 April 2025: ascertaining chargeable and unchargeable foreign securities income - from 6 April 2025: s26A employees
s41H, Chapter 5B of Part 2 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA)
S41H(6) Chapter 5B ITEPA sets out the income tax treatment of Securities Income where any part of the relevant period is within a tax year to which subsection (7) applies (ERSM162645). That treatment varies depending on whether the duties of the employment are performed wholly or partly outside the UK.
For any part of the relevant period on or after 6 April 2025, income apportioned to any part of the period in which the employee would previously have met the requirements of s41H(7) ITEPA will no longer be considered Foreign Securities Income.
Therefore, the income will not be deducted from the Securities Income in the calculation at s41F(3) ITEPA. Please see the example at ERSM165236.
Instead, the employee may be eligible to separately claim OWR on this portion of income under Chapter 5C ITEPA. Please see EIM43555 onwards.