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HMRC internal manual

National Insurance Manual

Class NICs: Share and share options acquired before 6 April 1999: Readily convertible assets from 1 October 1998

Regulation 1(2) of the Social Security (Contributions) Regulations 1979 and 2001

A readily convertible asset is defined as having the meaning assigned to it in section 203F(2) of the Income and Corporation Taxes Act 1988 which says that a readily convertible asset means:

(a) an asset that can be sold on a recognised investment exchange or on the London Bullion Market; or

(b) an asset that can be sold on a market specified in PAYE regulations; or

(c) a money debt; or

(d) an asset held subject to a fiscal warehouse regime, such as a bonded warehouse; or

(e) an asset that is likely to raise money without any action required by the employee; or

(f) an asset for which trading arrangements exist; or

(g) an asset for which trading arrangements are likely to exist in future.

Trading arrangements are defined as ‘arrangements for the purposes of enabling the person to whom an asset is provided to obtain an amount similar to the expense incurred in the provision of the asset.

The definition of a readily convertible asset was widened with effect from 1 September 2003 - see NIM06835.