SCHEDULES
SCHEDULE 21Approved share plans and schemes
Part 3CSOP schemes
Exercise of options: exclusion of income tax liability
14
1
Section 524 (no charge in respect of exercise of option under CSOP scheme) is amended as follows.
2
For subsection (1)(b) substitute—
b
Condition A or B is met.
3
For subsections (2) and (3) substitute—
2
Condition A is that the option is exercised—
a
on or after the third anniversary of the date on which it was granted, but
b
not later than the tenth anniversary of that date.
2A
Condition B is that the option—
a
is exercised before the third anniversary of the date on which it was granted, and
b
is so exercised by virtue of a provision included in the scheme under paragraph 24 of Schedule 4 (exercise of options after ceasing to be director or employee) in circumstances in which subsection (2B) applies.
2B
This subsection applies if the individual exercising the option—
a
has ceased to be a full-time director or qualifying employee of the scheme organiser (or, in the case of a group scheme, a constituent company) because of injury, disability, redundancy or retirement, and
b
exercises the option within 6 months of the day on which he ceases to be such a director or employee.
2C
In subsection (2B)—
“redundancy” means redundancy within the meaning of ERA 1996 or ER(NI)O 1996, and
“retirement” means retirement on or after reaching a retirement age specified in the scheme.
4
For section 525(1)(b) (no charge in respect of post-acquisition benefits) substitute—
b
Condition A or B (as set out in section 524(2) or (2A)) is met.
5
This paragraph has effect in relation to any exercise of an option on or after 9th April 2003.
15
1
Schedule 4 (approved CSOP schemes) is amended as follows.
2
After paragraph 35 insert—
Retirement age
35A
A retirement age specified in a CSOP scheme—
a
must be the same for men and women, and
b
must not be less than 55.