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Home / Simons-Taxes /Personal and employment tax /Part E4 Employment income /Division E4.5 Income and exemptions relating to securities /Convertible employment-related securities / E4.507H Application and definition of convertible securities
Commentary

E4.507H Application and definition of convertible securities

Personal and employment tax

The legislation applies to employment-related securities (see E4.507A) that are convertible securities, or an interest in convertible securities, at the time of acquisition1. Therefore shares that do not have the right to convert at the time of acquisition are outside ITEPA 2003, ss 435–444 (Pt 7, Ch 3). However, this does not mean that the effect of ITEPA 2003, ss 435–444 (Pt 7, Ch 3) can be circumvented by changing the share rights at a later date to make them convertible. Such an amendment is likely to give

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