readily convertible assets
Broadly, assets which are easily traded, such as stocks, shares, financial instruments, bullion or precious metals. The term also includes trade debts assigned to an employee, goods held in bonded warehousing, an interest in a trust, and a premium paid by an employer to enhance the value of an employee's life assurance policy. Under the UK pay as you earn (PAYE) and national insurance contributions (NIC) system, employers must operate PAYE when they pay employees in readily convertible assets. A liability to both Employer and Employee National insurance contributions also arises.
Shares will be readily convertible assets if they are quoted on a recognised investment exchange or if there are other trading arrangements in existence, or likely to come in existence, that will enable the person to obtain money for those shares (section 702, Income Tax (Earnings & Pensions Act) 2003). In addition, they will constitute readily convertible assets if the employer is not entitled to a corporation tax deduction under Schedule 23 of the Finance Act 2003 in respect of the transfer or allotment of those shares to the employee.
For further information see HM Revenue & Customs Employment Income Manual:
• PAYE: meaning of readily convertible assets
• PAYE: special types of payment: awards of shares: shares excluded from being assets.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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