Details of the Section
6.Subsection (1) provides for paragraph 17(1)(c) of Schedule 4 to ITEPA to be omitted.
7.Subsection (2) provides for consequential changes to sub-paragraph (1) of paragraph 17, and the omission of sub-paragraph (2) (definition of a “listed company”) from paragraph 17. It also provides for the omission of paragraph 20(3)(c), which defines “open market shares” where the shares in question are not listed on a recognised stock exchange and are under the control of a “listed company” (as that term is defined in the legislation).
8.Subsection (3) provides that the changes made by this section will come into force on 24 September 2010, after a six month transitional period from 24 March 2010 and will have effect in relation to options granted on or after 24 September 2010.
9.Subsection (4) provides that options granted to individuals in accordance with the provisions of an approved CSOP scheme during the transitional period from 24 March 2010 to 23 September 2010 will be treated for the purposes of the CSOP code as not granted in accordance with the provisions of an approved CSOP scheme, if the shares which may be acquired by the exercise of the option are those of a company which is under the control of a listed company, unless the shares in question are in a company which is itself listed on a recognised stock exchange.
10.Subsection (5) provides that any alteration made to a CSOP scheme during the transitional period so as to meet the requirements of the amended paragraph 17 will be treated as an alteration to a key feature of the CSOP scheme for the purposes of paragraph 30 of Schedule 4 to ITEPA (withdrawal of approval).
11.Subsection (6) provides that if the amended paragraph 17 requirement is not met at the end of the transitional period, the requirement is to be treated for the purposes of paragraph 30(2)(a) of Schedule 4 to ITEPA (disqualifying events) as ceasing to be met immediately after that time.
12.Subsection (7) provides that if approval for a scheme is withdrawn under Part 7 of Schedule 4 to ITEPA as a result of subsection (6) above, the withdrawal will be from the time determined in accordance with paragraph 30(1) of Schedule 4 to ITEPA and will apply to options granted on or after 24 September 2010.
13.Subsection (8) provides that references to options having been granted in subsections (3) to (7) include new share options granted under the terms of a provision included in a scheme under paragraph 26 of Schedule 4 to ITEPA (exchange of shares on company reorganisation). However, paragraph 27(5) of Schedule 4 (new share options treated as granted at the same time as old share options) does not apply for the purposes of subsections (3) to (7).
14.Subsection (9) provides definitions of terms used in this section.