Part 12Other relief for employee share acquisitions

Chapter 5Additional relief in cases involving convertible securities

1032Meaning of “chargeable event”

1

In this Chapter “chargeable event” means an event that—

a

is a chargeable event for the purposes of section 438 of ITEPA 2003,

b

is within section 439(3)(a) of ITEPA 2003, and

c

is within subsection (2).

2

An event is within this subsection if it is the conversion of convertible securities into shares in relation to which—

a

if the original relief is or would have been available under Chapter 2, all the conditions set out in section 1008 are met, or

b

if the original relief is or would have been available under Chapter 3, all the conditions set out in section 1016 are met (ignoring paragraph (f) of condition 3).

3

Subsection (4) applies if section 438 of ITEPA 2003—

a

does not apply in relation to the acquired securities, but

b

would apply if at all material times the employee had been a UK employee.

4

This Chapter applies as if the employee had been a UK employee as mentioned in subsection (3)(b).

5

The employee is a UK employee if—

a

the employee is UK resident and ordinarily UK resident, and

b

the duties of the relevant employment are performed in the United Kingdom.