Textual Amendments
F1Word in Sch. 3 title omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 103, 146 (with Sch. 8 paras. 147-157)
28(1)The price at which shares may be acquired by the exercise of a share option granted under the scheme—U.K.
(a)must be stated at the time when the option is granted, and
(b)must not be manifestly less than 80% of the market value of shares of the same class at that time.
This is subject to sub-paragraphs (2) and (3).
(2)[F2An officer of Revenue and Customs] and the scheme organiser may agree in writing that sub-paragraph (1)(b) is to apply as if the reference to the time when the option is granted were to an earlier time or times stated in the agreement.
(3)The scheme may provide for one or more of the following—
(a)the price at which shares may be acquired by the exercise of a share option granted under the scheme,
(b)the number of shares which may be so acquired, or
(c)the description of shares which may be so acquired,
to be varied so far as necessary to take account of a variation in the share capital of which the shares form part.
[F3(3A)If the scheme makes provision under sub-paragraph (3), the variation or variations made under that provision to take account of a variation in any share capital must (in particular) secure—
(a)that the total market value of the shares which may be acquired by the exercise of the share option is immediately after the variation or variations substantially the same as what it was immediately before the variation or variations, and
(b)that the total price at which those shares may be acquired is immediately after the variation or variations substantially the same as what it was immediately before the variation or variations.
(3B)Sub-paragraph (3) does not authorise any variation which would result in the requirements of the other paragraphs of this Schedule not being met in relation to the share option.]
F4(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F5(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.]
Textual Amendments
F2Words in Act substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 102(1); S.I. 2005/1126, art. 2(2)(h)
F3Sch. 3 para. 28(3A)(3B) inserted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 111(2), 146 (with Sch. 8 paras. 147-157)
F4Sch. 3 para. 28(4) omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 111(3), 146 (with Sch. 8 paras. 147-157)
F5Sch. 3 para. 28(5)(6) inserted (with effect in accordance with Sch. 2 para. 67 of the amending Act) by Finance Act 2013 (c. 29), Sch. 2 para. 62