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ERSM40110 | Convertible securities: PAYE/NIC

From HM Revenue & Customs · Employment Related Securities Manual

s698, s699 & s702 Chapter 4 Part 11 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA)

PAYE and NIC is operable

  • for chargeable events arising before 1/9/2003, by virtue of s699 Chapter 4 Part 11 ITEPA 2003 as originally enacted (see EIM11870); and

  • for chargeable events arising after 1/9/2003, by virtue of s698(1)(b) ITEPA (see EIM12230/NIM06828)

where either

  • the securities acquired on conversion are readily convertible assets (RCAs), or

  • the consideration or benefit is cash or a RCA.

See s702 ITEPA for definition of RCA.