Part 7Employment income: share-related income and exemptions
Chapter 9Enterprise management incentives
Tax advantages: exercise of option
530No charge on exercise of option to acquire shares at market value
1
This section applies if the option is to acquire shares at not less than their market value—
a
at the time when the option is granted, or
b
if it is a replacement option, at the time when the original option was granted.
2
If this section applies, no liability to income tax arises by virtue of section 476 (charge on exercise etc. of option by employee) in respect of the exercise of the option.
3
This section has effect subject to section 532 (modified tax consequences following disqualifying events).