readily convertible assets
- 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.
www.practicallaw.com.
2010.
Look at other dictionaries:
assets — /aesets/ Property of all kinds, real and personal, tangible and intangible, including, inter alia, for certain purposes, patents and causes of action which belong to any person including a corporation and the estate of a decedent. The entire… … Black's law dictionary
assets — /aesets/ Property of all kinds, real and personal, tangible and intangible, including, inter alia, for certain purposes, patents and causes of action which belong to any person including a corporation and the estate of a decedent. The entire… … Black's law dictionary
Liquid assets — Assets consisting of cash and other assets readily convertible into cash without a substantial loss in value … International financial encyclopaedia
quick assets — noun assets in the form of cash (or easily convertible into cash) • Syn: ↑liquid assets, ↑current assets • Usage Domain: ↑plural, ↑plural form • Hypernyms: ↑assets … Useful english dictionary
current assets — noun plural Date: circa 1909 assets of a short term nature that are readily convertible to cash … New Collegiate Dictionary
current assets — Com. assets that are readily convertible into cash, usually within one year, without loss in value. [1905 10] * * * … Universalium
current assets — cur′rent as′sets n. pl. bus assets that are readily convertible into cash … From formal English to slang
cash assets — noun plural : assets consisting of cash and items readily convertible to cash (as marketable securities or life insurance) … Useful english dictionary
unapproved share option scheme — A share option scheme that is not Inland Revenue approved. One of the major reasons for using an unapproved scheme is to enable the company to grant an option at a subscription price below the market value of the shares and to avoid the ₤30,000… … Law dictionary
near money — assets that are easily convertible into cash, such as money market accounts and bank deposits. Bloomberg Financial Dictionary * * * near money near money ➔ money * * * Assets, such as money market fund shares, bank time deposits and government … Financial and business terms
