68U.K.In Part 2 of Schedule 4 (general requirements for approval) in paragraph 6 (limit on value of shares subject to options) after sub-paragraph (3) insert—
“(4)For the purposes of this paragraph the market value of shares subject to a restriction is to be determined as if they were not subject to the restriction.”
69U.K.Part 4 of Schedule 4 (shares to which schemes can apply) is amended as follows.
70U.K.In paragraph 15 (introduction)—
(a)after the entry for paragraph 18 insert “ and ”, and
(b)omit the entry relating to paragraph 19 and the “and” after it.
71U.K.Omit paragraph 19 (only certain kinds of restrictions allowed).
72U.K.In Part 5 of Schedule 4 (requirements etc relating to share options) in paragraph 22 after sub-paragraph (4) insert—
“(5)At the time a share option is granted—
(a)it must be stated whether or not the shares which may be acquired by the exercise of the option may be subject to any restriction, and
(b)if so, the details of the restriction must also be stated.
(6)For the purposes of this paragraph the market value of shares subject to a restriction is to be determined as if they were not subject to the restriction.”
73U.K.In Part 6 of Schedule 4 (exchange of share options) in paragraph 27 (requirements about share options granted in exchange) after sub-paragraph (6) insert—
“(7)For the purposes of this paragraph the market value of shares subject to a restriction is to be determined as if they were not subject to the restriction.”
74U.K.Part 8 of Schedule 4 (supplementary provisions) is amended as follows.
75U.K.In paragraph 36 (minor definitions) after sub-paragraph (2) insert—
“(3)For the purposes of the CSOP code—
(a)shares are subject to a “restriction” if there is any contract, agreement, arrangement or condition which makes provision to which any of subsections (2) to (4) of section 423 (restricted securities) would apply if the references in those subsections to the employment-related securities were to the shares, and
(b)the “restriction” is that provision.”
76U.K.In paragraph 37 (index of defined expressions) at the appropriate place insert—
| “restriction (in relation to shares) | paragraph 36(3)”. |
77(1)The amendment made by paragraph 68 above has effect for the purpose of determining whether options may be granted to an individual on or after the day on which this Act is passed; but the amendment is to be ignored in determining the market value of any shares to which an option granted before that day relates.U.K.
(2)The amendments made by paragraphs 69 to 72 above have effect in relation to options granted on or after that day.
(3)The amendment made by paragraph 73 above has effect for cases where the old options are granted on or after that day.
(4)A CSOP scheme approved before that day has effect with any modifications needed to reflect the amendments made by paragraphs 68 to 76 above.
(5)In particular, in relation to options granted on or after that day, such a CSOP scheme has effect with the omission of any provision falling within a provision of Schedule 4 to ITEPA 2003 omitted by paragraph 71 above.