C1Part 7F1Employment income: income and exemptions relating to securities
Pt. 7: power to modify conferred (7.4.2005) by Finance Act 2005 (c. 7), s. 21(8)-(10)
Chapter 9Enterprise management incentives
Tax advantages where disqualifying events
536Other disqualifying events
1
The following are also disqualifying events in relation to a qualifying option—
a
any variation of the terms of the option whose effect is either—
i
to increase the market value of the shares that are the subject of the option, or
ii
that the requirements of Schedule 5 would no longer be met in relation to the option;
b
any alteration to the share capital of the relevant company—
i
to which subsection (2) (share values affected by alteration of rights or restrictions) of section 537 applies, and
ii
whose effect is that the requirements of Schedule 5 would no longer be met in relation to the option;
c
any alteration to the share capital of the relevant company to which—
i
subsection (2) (share values affected by alteration of rights or restrictions), and
ii
subsection (3) (alteration designed to increase share values),
of section 537 apply;
d
a conversion of any of the shares to which the option relates into shares of a different class, except in a case within section 538(2); and
e
the grant to the employee of a relevant CSOP option, if immediately after it is granted the employee holds unexercised employee options in respect of shares with a total value of more than F2£250,000 .
2
In subsection (1)(e)—
“relevant CSOP option”, and
“employee option”,
have the meaning given by section 539 (CSOP and other options relevant for purposes of this section); and sub-paragraphs (6) to (8) of paragraph 5 of Schedule 5 (determination of value of shares) apply for the purposes of subsection (1)(e) as they apply for the purposes of paragraph 5.
Pt. 7 heading substituted (with effect in accordance with Sch. 22 para. 2(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 2(1)