Conversion of securities: definition of conversion
TCGA92/S132 (3)(a) originally gave three specific examples of conversions.
- A conversion of securities of a company into shares in the company. TCGA92/S132 (3)(a)(i);
- A conversion into other securities at the option of the holder as an alternative to redeeming the securities for cash. TCGA92/S132 (3)(a)(ii);
- The issue of government stock in exchange for shares in companies which are nationalised but see CG55045 if the compulsory acquisition occurred after 6 April 1976.
These examples are not an exhaustive definition of conversion. A conversion of securities into other securities in the same company which did not fall within TCGA92/S132 (3)(a)(ii) should also be treated as a conversion.
In addition, the range of cases covered by the Section was broadened by legislation in FA97. See CG55018+.