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HMRC internal manual

Employment Income Manual

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HM Revenue & Customs
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PAYE: meaning of readily convertible assets: trading arrangements

Section 702(1)(c) ITEPA 2003

If the definitions of readily convertible asset in Section 702(1)(a) or (b) are not met (see EIM11901 to EIM11907) the alternative definition in Section 702(1)(c) ITEPA 2003 may apply. This requires that at the time an asset is provided, in respect of that asset either:

  • there are trading arrangements in existence, or
  • trading arrangements are likely to come into existence in accordance with either:

    • any arrangements of another description existing when the asset is provided, or
    • any understanding existing at that time.

Meaning of trading arrangements

Trading arrangements is a term used specifically in Section 702 ITEPA 2003 and accordingly is explained within Section 702 (see EIM11910).