Income Tax (Earnings and Pensions) Act 2003 section 420

Meaning of "securities" etc.

Section 420 defines the term "securities" and related expressions for the purposes of the employment-related securities rules in Chapters 1 to 5 of Part 7 of ITEPA 2003.

• Securities include a wide range of financial instruments: shares, debentures, loan stock, bonds, warrants, units in collective investment schemes, options, futures, contracts for differences, certain insurance contracts, and alternative finance investment bond arrangements
• Certain everyday financial items are specifically excluded from the definition, including cheques, bankers' drafts, cash balances, leases, and securities options (which have their own separate regime)
• Insurance contracts only count as securities if they are not "excluded" — pension annuities, long-term insurance policies with no surrender value, and most general insurance contracts are all excluded
• The Treasury has the power to amend the definition of securities by statutory order, and the section also defines key related terms including "interest" in securities, "securities option", and "shares"

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