Finance Act 2003

14(1)Section 524 (no charge in respect of exercise of option under CSOP scheme) is amended as follows.U.K.

(2)For subsection (1)(b) substitute—

(b)Condition A or B is met..

(3)For subsections (2) and (3) substitute—

(2)Condition A is that the option is exercised—

(a)on or after the third anniversary of the date on which it was granted, but

(b)not later than the tenth anniversary of that date.

(2A)Condition B is that the option—

(a)is exercised before the third anniversary of the date on which it was granted, and

(b)is so exercised by virtue of a provision included in the scheme under paragraph 24 of Schedule 4 (exercise of options after ceasing to be director or employee) in circumstances in which subsection (2B) applies.

(2B)This subsection applies if the individual exercising the option—

(a)has ceased to be a full-time director or qualifying employee of the scheme organiser (or, in the case of a group scheme, a constituent company) because of injury, disability, redundancy or retirement, and

(b)exercises the option within 6 months of the day on which he ceases to be such a director or employee.

(2C)In subsection (2B)—

redundancy” means redundancy within the meaning of ERA 1996 or ER(NI)O 1996, and

retirement” means retirement on or after reaching a retirement age specified in the scheme..

(4)For section 525(1)(b) (no charge in respect of post-acquisition benefits) substitute—

(b)Condition A or B (as set out in section 524(2) or (2A)) is met..

(5)This paragraph has effect in relation to any exercise of an option on or after 9th April 2003.