A convertible security is a share or bond which may be converted into another type of share or bond. The right to convert may be unconditional, or may depend on a stated set of future circumstances. Sometimes the right to convert may be acquired later. The significance in terms of tax is chiefly to do with securities acquired through employment (employment-related securities). Without specific legislation it would be possible to reward an employee with shares of a certain value (and subject to tax on that value) which could later be converted to securities of a higher value. Not surprisingly, there are detailed rules designed to bring into the tax net any such subsequent increase in value. There is a specific tax definition of the term "convertible securities" which may be considered to be wider in scope than a straightforward commercial definition, and as such needs to be considered very carefully by employers wishing to reward employees in this way.
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‘Hold-over’ relief allows for the deferral of a gain that would otherwise arise in relation to a disposal. No capital gains tax (CGT) is due in respect of the disposal, but the base cost of the asset for the transferee for the purpose of a future disposal is reduced by an amount equal to the gain
Terminal loss relief for trade losses in the final 12 monthsTrading losses incurred by a company in the final 12 months leading up to the discontinuance of trade may be carried back for up to three years from the period beginning immediately before that 12-month period. So if the final accounting
Time for paymentTwo statutory rules apply on death:•tax is ‘due’ six months after the end of the month of death and carries interest from the ‘due’ date until paidThere is a possibility of payment by instalments, but this applies to certain types of property only ― see the ‘Availability of
This guidance note provides an overview of the steps businesses need to take if aspects of their business change, and as a result, they need to notify HMRC about the change.Changes to name and / or addressIf a business changes its name and / or its address then it is required to notify HMRC of the