ERSM170200 - PAYE & NICs:Conditional shares acquired before 16 April 2003

PAYE on or after 16 April 2003 on conditional shares acquired before

»Ê¹ÚÌåÓýapp charges on conditional shares acquired before 16 April 2003 are grandfathered in that Chapter 2 Part 7 as originally enacted in ITEPA 2003 continues to apply to themâ€� see ERSM30200.

Correspondingly, PAYE is imposed by ITEPA03/S698 as originally enacted on such charges onor after 16 April 2003. »Ê¹ÚÌåÓýapp charges affected are:

  • ITEPA03/S427Ìý(1) (as originally enacted) shares ceasing to be conditional or disposed of, and
  • ITEPA03/S431 (as originally enacted) death of employee holding conditional shares.

Ìý

PAYE is only exigible if the shares are readily convertible assets (see ERSM170020).

»Ê¹ÚÌåÓýapp employee is treated as if provided with a notional payment equal to the charge.

ITEPA03/S222 applies in relation to any employee not making good PAYE tax to the employer� see ERSM170400.