Part 7

Employment income: income and exemptions relating to securities
Chapter 3

Convertible securities

Tax charge on post-acquisition chargeable events

Amount of consideration given for entitlement to convert
442
1
This section applies for the purposes of section 440 (amount of charge on occurrence of chargeable event).
2
Consideration is to be regarded as given for the entitlement to convert the employment-related securities (or the securities in which they are an interest) if (and only if) ACS exceeds NCMV.
3
The amount of the consideration to be regarded as so given is the amount of the excess.
4
ACS is the amount of the consideration given for the acquisition of the employment-related securities.
5
NCMV is the market value of the employment-related securities at the time of the acquisition, determined as if they were not convertible securities or an interest in convertible securities.
Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)
Pt. 7 Ch. 3 substituted (1.9.2003 with effect in accordance with Sch. 22 para. 4(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 4(1); S.I. 2003/1997, art. 2
Pt. 7 heading substituted (with effect in accordance with Sch. 22 para. 2(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 2(1)