SCHEDULE 23Corporation tax relief for employee share acquisition
Part 3Grant of option
Income tax position of the employee
14
(1)
It must be the case that the employee—
(a)
either—
(i)
was subject to a charge to income tax under the Income Tax (Earnings and Pensions) Act 2003 (c. 1) in respect of the grant of the option, or
(ii)
is subject to a charge to income tax under that Act by virtue of section 476 or 477 of that Act in respect of the gain realised by the exercise of the option, or
(b)
would be subject to such a charge as is mentioned in paragraph (a)(ii) but for a relevant exemption, or
(c)
would be within paragraph (a) or (b) if the conditions specified in sub-paragraph (3) were met.
(2)
In sub-paragraph (1)(b) a “relevant exemption” means an exemption under—
(a)
section 519, 520, 524 or 525 of the Income Tax (Earnings and Pensions) Act 2003 (exercise of option under approved SAYE scheme or approved CSOP scheme), or
(b)
section 530 of that Act (exercise of qualifying option under EMI code).
(3)
The conditions mentioned in sub-paragraph (1)(c) are—
(a)
that the employee was resident and ordinarily resident in the United Kingdom at all material times, and
(b)
that the duties of the employment by reason of which the option was granted were performed in the United Kingdom at all material times.