Income Tax (Earnings and Pensions) Act 2003 section 445

Duty to notify conversions of shares

Section 445 sets out the obligation to report to HMRC when shares acquired through employment are converted into shares of a different class, which may give rise to a tax charge.

• When shares obtained through employment are converted into a different class of shares, this may trigger a tax charge under the relevant chapter of the Act.
• There is a legal duty to notify HMRC when such a conversion of shares takes place.
• The notification must be made within 92 days after the end of the tax year in which the conversion occurs.
• This reporting requirement ensures HMRC can assess whether any additional tax is due as a result of the conversion.