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Taxation of Chargeable Gains Act 1992

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Changes over time for: Paragraph 10

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Point in time view as at 26/05/2015.

Changes to legislation:

Taxation of Chargeable Gains Act 1992, Paragraph 10 is up to date with all changes known to be in force on or before 07 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

[F110(1)This paragraph applies where—U.K.

(a)a share option (“the option”) has been granted to an individual—

(i)in accordance with the provisions of [F2a Schedule 3] SAYE option scheme, and

(ii)by reason of the individual’s office or employment as a director or employee of a company,

(b)the individual exercises the option in accordance with the provisions of the SAYE option scheme at a time when the scheme is [F3a Schedule 3 SAYE option scheme], and

(c)condition A or condition B in section 519(2) or (3) of ITEPA 2003 (no charge in respect of exercise of option) is met.

(2)The company mentioned in sub-paragraph (1)(a)(ii) may be—

(a)the company whose shares are the subject of the option, or

(b)some other company.

[F4(3)Sub-paragraph (3A) applies for the purposes of sub-paragraph (1)(b) if—

(a)the SAYE option scheme is not to be a Schedule 3 SAYE option scheme by virtue of paragraph 40H or 40I of Schedule 3 to ITEPA 2003, and

(b)the option was granted before, but exercised at or after, the time mentioned in paragraph 40H(2)(a)(i) or (ii) or 40I(7)(a)(i) or (ii) of that Schedule (as the case may be).

(3A)The scheme is to be taken still to be a Schedule 3 SAYE option scheme when the option is exercised.]

(4)Section 17(1) (disposals and acquisitions treated as made at market value) shall not apply in calculating the consideration for—

(a)the individual’s acquisition of shares by the exercise of the option, or

(b)any corresponding disposal of those shares to the individual.

(5)References in sub-paragraphs (1)(b) and (4) above to the individual include references to a person exercising the option in accordance with provision included in the scheme by virtue of paragraph 32 of Schedule 3 to ITEPA 2003 (exercise of options: death); and sub-paragraph (1)(c) above does not apply in relation to a person so exercising the option.]

Textual Amendments

F1Sch. 7D inserted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 221 (with Sch. 7)

F2Words in Sch. 7D para. 10(1)(a)(i) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 128(2)(a), 146 (with Sch. 8 paras. 147-157)

F3Words in Sch. 7D para. 10(1)(b) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 128(2)(b), 146 (with Sch. 8 paras. 147-157)

F4Sch. 7D para. 10(3)(3A) substituted for Sch. 7D para. 10(3) (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 128(3), 146 (with Sch. 8 paras. 147-157)

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