SCHEDULES
F1F1SCHEDULE 14
Part VIII Company reorganisations
Qualifying requirements for replacement option
63
A new option qualifies as a replacement option only if—
a
the option is granted to the holder of the old option by reason of his employment—
i
with the acquiring company, or
ii
if that company is a parent company, with that company or another group company;
b
at the time of the release of rights under the old option, the requirements of—
i
paragraph 9 (purpose of granting the option), and
ii
F2(maximum value of options in respect of relevant company’s shares),
are met in relation to the new option;
c
at that time, the independence requirement and the trading activities requirement are met in relation to the acquiring company;
d
at that time, the individual to whom the new option is granted is an eligible employee in relation to the acquiring company;
e
at that time, the requirements of Part V are met in relation to the new option;
f
the total market value, immediately before the release, of the shares which were subject to the old option is equal to the total market value, immediately after the grant, of the shares in respect of which the new option is granted; and
g
the total amount payable by the employee for the acquisition of shares in pursuance of the new option is equal to the total amount that would have been payable for the acquisition of shares in pursuance of the old option.
Sch. 14 repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 8 Pt. 1 (with Sch. 7)