Income Tax (Earnings and Pensions) Act 2003 section 435

Application of this Chapter

Section 435 defines when the convertible securities rules apply, based on the nature of the securities at the point they are acquired in connection with employment.

• This Chapter applies to employment-related securities that are convertible securities, or an interest in convertible securities, at the time of acquisition.
• The securities must be acquired in a person's capacity as a director or employee, including prospective and former directors and employees.
• "Convertible" means the securities carry a right or opportunity to be converted into other securities or assets, or there is an arrangement under which conversion may take place.
• These rules apply only to securities acquired on or after 17 March 1998.