More share related woes

More share related woes

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I am trying to establish whether shares awarded from an EBT are readily convertible assets hence subject to PAYE.

I am aware that as from last year all unquoted shares are readily convertible assets unless a corporation tax deduction is available under Sch 23 FA 2003.

The various conditions seem to be satisfied but I am concerned that the shares are already in issue (acquired by EBT from leavers). However I can't see a reference to the fact that there must be a new issue of shares.

Additionally, a CT deduction has alreday been obtained by way of the contribution to the EBT. How does this fit in within Sch 23?

The only thing I can find is under Part 5 of Sch 23 "RELATIONSHIP BETWEEN RELIEF AND OTHER DEDUCTIONS: EXCLUSION OF OTHER DEDUCTIONS" Is Para 25(1) saying that the contribution to the EBT must be disallowed and substituted for MV at the time of the award? Is this a 'cost of providing the shares' (para 25(2))?

Thanks in advance.

Daren Peacock

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