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HMRC internal manual

Employment Related Securities Manual

From
HM Revenue & Customs
Updated
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Convertible securities: chargeable events

The following events are, per ITEPA03/S439(3), the chargeable events in connection with convertible securities:

  • The conversion of the securities into securities of a different description where an “associated person” has a beneficial interest in the newly converted securities (see ERSM20250).
  • The disposal of convertible securities in return for consideration. The disposal must be by an associated person to someone who is not an associated person.
  • The release of the entitlement to convert the securities in return for consideration.
  • The receipt by an associated person of a benefit in money or money’s worth in respect of the entitlement to convert the securities. This could be, for example, compensation for the loss of entitlement to convert the securities.

The taxable amount is described in ERSM40070.