SCHEDULES

SCHEDULE 2Tax advantaged employee share schemes

PART 2“Good leavers” (other than retirees)

CSOP schemes

30

1

In Part 6 of Schedule 4 (exercise of share options) paragraph 26 (exchange of options on company reorganisation) is amended as follows.

2

In sub-paragraph (2)(c)—

a

after “982” insert “ or 983 to 985 ”, and

b

after “shareholder” insert “ etc ”.

3

After sub-paragraph (2) insert—

2A

In sub-paragraph (2)(a)(i) the reference to the issued ordinary share capital of the scheme company does not include any capital already held by the person making the offer or a person connected with that person and in sub-paragraph (2)(a)(ii) the reference to the shares in the scheme company does not include any shares already held by the person making the offer or a person connected with that person.

2B

For the purposes of sub-paragraph (2)(a)(i) and (ii) it does not matter if the general offer is made to different shareholders by different means.

4

A CSOP scheme approved before the day on which this Act is passed which contains provision under paragraph 26 of Schedule 4 to ITEPA 2003 has effect with any modifications needed to reflect the amendments made by this paragraph.