SCHEDULE 3 PAYMENTS TO BE DISREGARDED IN THE CALCULATION OF EARNINGS FOR THE PURPOSES OF EARNINGS-RELATED CONTRIBUTIONS

PART IX SHARE INCENTIVES

Conditional interest in shares: gains from exercise etc. of share options

10.  A payment by way of a conditional interest in shares where, at the time of payment—

(a) the earner is treated under section 203FB(4) of the Taxes Act (PAYE: gains from share options etc)(1) as having been provided with a further interest;

(b) that further interest would not for the purpose of section 140A of that Act, be treated as only conditional; and

(c) the conditional interest together with the further interest are not readily convertible assets.

(1)

Section 203FB was inserted by section 67 of the Finance Act 1998.