Related HMRC Manuals

442(1)  This section applies if a security is issued to a person in accordance with the terms of a qualifying earn-out right.

442(2)  The amount paid by the person to acquire the security is to be taken for the purposes of this Chapter to be the total of–

(a)the market value, immediately before the issue, of the right to be issued with the security in accordance with the terms of the qualifying earn-out right, and

(b)any amount payable for the issue in accordance with those terms.

442(3)  In this section “qualifying earn-out right”  means a right that meets conditions A to C, or so much of a right as does so.

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