Employment Related Securities Manual

ERSM170050 - PAYE & NICs: Acquisition of Securities

Acquisition of securities

A straight forward form of reward with employment-related securities is where the employer聽transfers聽securities to the employee for free or for less than their market value. The difference between their market value and what the employee paid will be chargeable as earnings (being 바카라 사이트渕oney바카라 사이트檚 worth바카라 사이트�) under ITEPA03/S62 바카라 사이트� see ERSM20500.

However the amount chargeable under section 62 on acquisition of restricted securities or convertible securities may be modified by:

• ITEPA03/S425 (forfeitable securities 바카라 사이트� see ERSM30300 & ERSM30370),
• ITEPA03/S431 (elections on restricted securities 바카라 사이트� see ERSM30450), and
• ITEPA03/S437 (convertible securities 바카라 사이트� see ERSM40050).

If the securities are 바카라 사이트渞eadily convertible assets바카라 사이트� (see ERSM170020) then the employer must operate PAYE on the best estimate that can reasonably be made (see ERSM170010) of the amount to be chargeable as employment income on the employee.

The employee, to avoid a benefits charge under ITEPA03/S222, should make good to the employer any part of the PAYE tax that the employer is unable to deduct 바카라 사이트� see ERSM170400.

NIC is also likely to be due (see ERSM170700).