BIM44360 - Specific deductions: employee share schemes: providing shares to employees: qualifying shares: restricted or convertible shares: introduction
Special rules apply if the employees acquire shares which are:
- subject to certain restrictions (‘restricted shares�), or
- convertible into other shares or securities (‘convertible shares�).
Exceptionally, special rules may still apply to shares acquired before 16 April 2003 which are subject to a risk of being forfeited (‘forfeitable shares�). Forfeitable shares acquired on or after that date fall within the category of restricted shares.
»Ê¹ÚÌåÓýapp special rules broadly align the timing and amount of deductions for the employer with the timing of amounts taxable on the employee as employment income in respect of:
- the acquisition of the shares, and
- subsequent post-acquisition events.
»Ê¹ÚÌåÓýapp special rules also apply if employees acquire qualifying shares on conversion of other shares or securities.
This section contains guidance on the following:
| BIM44385 | Restricted shares |
|---|---|
| BIM44390 | Restricted shares: example |
| BIM44400 | Convertible shares |
| BIM44405 | Convertible shares: examples |