Section 442 — Finance Act 2003: Amount of consideration given for entitlement to convert

Amount of consideration given for entitlement to convert 442 1 This section applies for the purposes of section 440 (amount of charge on occurrence of chargeable event).

2 Consideration is to be regarded as given for the entitlement to convert the employment-related securities (or the securities in which they are an interest) if (and only if) ACS exceeds NCMV.

3 The amount of the consideration to be regarded as so given is the amount of the excess.

4 ACS is the amount of the consideration given for the acquisition of the employment-related securities.

5 NCMV is the market value of the employment-related securities at the time of the acquisition, determined as if they were not convertible securities or an interest in convertible securities.