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.
15(1)Schedule 4 (approved CSOP schemes) is amended as follows.U.K.
(2)After paragraph 35 insert—
35AA retirement age specified in a CSOP scheme—
(a)must be the same for men and women, and
(b)must not be less than 55.”.