Part 7F1Employment income: income and exemptions relating to securities
Annotations:
Amendments (Textual)
Chapter 3Convertible shares
Tax charge
438Charge on conversion of shares
1
This section applies if, at a time when the employee has a beneficial interest in them, the shares are converted into shares of a different class in pursuance of an entitlement to convert them which has been conferred on the holder.
2
The taxable amount determined under section 439 counts as employment income of the employee for the relevant tax year.
3
The “relevant tax year” is the tax year in which the conversion occurs.
4
This section is subject to—
section 440 (case outside charge under this section: conversion of entire class), and
section 441 (case outside charge under this section: acquisition of conditional interest).
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)