Jurisdiction(s):
United Kingdom

Employment-related securities (UK): scope, definitions and deeming rules under ITEPA 2003; options, partnerships, collective investment schemes, interests, timing, connected persons and key case law

Published by a LexisNexis Share Incentives expert

Practice notes

Establishing whether an employment‑related security exists is essential to deciding if the specific (and sometimes punitive) income tax and National Insurance contributions (NICs) charges for employment‑related securities are triggered. The definition is wide and splits into two principal parts:

what constitutes a security—covering shares, debt, derivatives and interests in investment partnerships, and
whether the security is employment‑related—being so if the right or chance arises by reason of employment or is provided by an employer

What is a security?

Securities are defined in very broad terms and include:

shares (including stock) in any:
- body corporate (whether UK or overseas incorporated), or
- non‑UK unincorporated body
rights under contracts of insurance other than “excluded” insurance contracts (ie pension annuity contracts; long‑term non‑annuity insurance with no surrender value; and general insurance contracts which are not treated under generally accepted accounting principles (GAAP) as financial assets or liabilities)
debentures, debenture stock, loan stock, bonds, certificates of deposit and other debt instruments (both company and government)
warrants and other instruments entitling holders to subscribe for (rather than purchase) securities—this includes warrants with additional rights (such as

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Web page updated on 21/05/2026

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