Vermilion in the Supreme Court

CRC v Vermilion Holdings Ltd [2023] UKSC 37 is a Scottish case concerned with ITEPA 2003 s 471 and more specifically the deeming provision in s 471(3) which if it applies brings within the charge to income tax as employment income under ITEPA 2003 Part 7 Chapter 5 s 476 the gain on exercise of a securities option.

A share (or other securities) option gain is treated as employment income if the right or opportunity to acquire the option is available by reason of employment whether of the grantee or some other person (s 471(1)). This necessarily involves an enquiry into causation. If however s 471(3) applies the option is deemed to have been made available by reason of employment and is therefore treated as an employment-related securities option with no need to enquire as...