SE11852 - PAYE avoidance: shares as readily convertible assets

Section 203F ICTA1988

Share awards after 26 November 1996

Shares in Inland Revenue approved schemes remain outside PAYE under the readily convertible asset rules (see Share Schemes Manual 2.1) but for shares in unapproved schemes awarded after 26 November 1996, and shares acquired on exercise of options granted after 26 November 1996, Section 203F applies equally to shares provided by an employer as to other assets provided by an employer, if the shares are readily convertible assets (see SE11803).

For share awards the definitions of readily convertible asset most likely to apply are

• shares listed on a recognised investment exchange (see SE11803)
• shares listed on the New York Stock Exchange (see SE11804)
• shares awarded subject to trading arrangements (see SE11810)
• shares awarded subject to likely trading arrangements in future (see SE11811).