ERSM40060 - Convertible Securities
Chargeable events
The following events are, per ITEPA03/S439 (3), the
chargeable events in connection with convertible securities:
- The conversion of the securities into
securities of a different description where an “associated
person” has a beneficial interest in the newly converted
securities (see
ERSM20250).
- The disposal of convertible securities in
return for consideration. The disposal must be by an associated
person to someone who is not an associated person.
- The release of the entitlement to convert
the securities in return for consideration.
- The receipt by an associated person of a
benefit in money or money’s worth in respect of the
entitlement to convert the securities. This could be, for example,
compensation for the loss of entitlement to convert the
securities.
The taxable amount is described in
ERSM40070.
