The principles that apply to replacement or additional securities also apply to rights issues. A rights issue in respect of employment-related securities will be an employment-related securities option, potentially charged under Chapter 5 (see ERSM110000). However a gain will rarely arise because the rights issue will reduce the value of the existing holding.

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.