Expat share scheme tax changes to be postponed

The government has proposed that share scheme tax and national insurance contribution (NIC) changes for expatriate employees should take effect from April 2015, rather than September 2014 as previously proposed.


In its Overview of tax legislation and rates, which was published alongside the Budget 2014 on 19 March, the government confirmed that the changes will be published on 27 March when the Finance Bill 2014 is due to receive royal assent.

The document stated: “As announced in Budget 2013, legislation will be introduced in Finance Bill 2014 and by secondary legislation to implement simplification measures recommended by the [Office of Tax Simplification] for the taxation of employment-related securities.

“Following consultation, the legislation has been revised to enable corporation tax relief to be available in a range of circumstances where [organisations] employ or host internationally mobile employees (IMEs), correct an anomaly in relation to employer contributions to overseas pensions schemes, and provide other minor and technical updates.

“Many of these changes will have effect from 6 April 2014 or from royal assent to Finance Bill 2014.

“However, following feedback from stakeholders, measures to simplify the income tax, national insurance contributions and corporation tax rules for IMEs will have effect from 6 April 2015, and will apply to events after that date in relation to any employment-related securities.”