Part 7Employment income: share-related income and exemptions

Chapter 9Enterprise management incentives

Tax advantages: exercise of option

529Scope of tax advantages: option must be exercised within 10 years

1

Sections 530 to 540 apply in connection with the exercise of a qualifying option.

2

But those sections only apply in cases where the option is exercised on or before the tenth anniversary of—

a

the date of the grant of the option, or

b

if it is a replacement option, the date of the grant of the original option.

3

In the EMI code “the original option” means—

a

where there has been one replacement option, the option that that option replaced, or

b

where there have been two or more replacement options, the option that the first of them replaced.