Charman v Revenue and Customs Comrs

Subject Matter

REVENUE — Income tax — Earnings — Employment-related restricted securities — Employer granting taxpayer share options vesting in three tranches over separate years — Shares restricted under terms including continued employment — Shares exchanged for those in related company — Whether right to acquire securities arising on date of grant of options or when each tranche vested — Whether interest in shares in related company acquired “as a director or employee” — Income Tax (Earnings and Pensions) Act 2003, ss 420(8), 423, 474, 476

[2020] UKUT 253 (TCC); [2020] STC 1907, UT (TCC)

REVENUE — Income tax — Employment — Earnings — Employer granting taxpayer options to purchase shares in company — Options vesting in three tranches — Taxpayer resident in United Kingdom when first two tranches vesting but not third — Whether taxpayer liable to tax in respect of third tranche — Whether taxpayer resident in United Kingdom when third tranche of options acquired — Whether “acquisition” of options occurring when options granted or when options vesting — Income Tax (Earnings and Pensions) Act 2003 (c 1), ss 420(8), 474(1), 476

[2021] EWCA Civ 1804; [2022] 1 WLR 2277; [2022] STC 157; [2021] WLR(D) 613, CA

Appellate History