Income Tax (Earnings and Pensions) Act 2003 (c. 1)

Part 7 Employment income: share-related income and exemptions

Chapter 8 Approved CSOP schemes

Tax advantages

525 No charge in respect of post-acquisition benefits

(1) This section applies if—

(a) the individual exercises the share option in accordance with the provisions of the CSOP scheme at a time when the scheme is approved, and

(b) the condition set out in section 524(2) is met.

(2) No liability to income tax arises by virtue of—

• section 449 (charge where restrictions or rights varied after acquisition), or

• section 453 (charge on increase in value of shares of dependent subsidiaries),

in respect of shares acquired by the exercise of the option.