HC Deb 14 April 2003 vol 403 c766

Resolved,

That—

(1) Section 524 of the Income Tax (Earnings and Pensions) Act 2003 shall be amended as follows.

(2) For subsection (1)(b) there shall be substituted—

"(b) Condition A or B is met.".

(3) For subsections (2) and (3) there shall be substituted—

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

  1. (a) on or after the third anniversary of the date on which it was granted, but
  2. (b) not later than the tenth anniversary of that date.

(2A) Condition B is that the option—

  1. (a) is exercised before the third anniversary of the date on which it was granted, and
  2. (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—

  1. (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
  2. (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 the retirement age specified in the scheme.".

(4) For section 525(1)(b) there shall be substituted— (b) Condition A or B (as set out in section 524(2) or (2A)) is met.".

(5) Section 701 (2)(c) of the Income Tax (Earnings and Pensions) Act 2003 shall be amended as follows.

In sub-paragraph (i), "or 4 (approved CSOP schemes)" shall be omitted.

(7) After that sub-paragraph there shall be inserted— (ia) any shares acquired by the employee (whether or not as a result of the exercise of a right to acquire shares) under a scheme approved under Schedule 4 (approved CSOP schemes), other than shares acquired as a result of the exercise of the right before the third anniversary of the date on which it was granted or later than the tenth anniversary of that date;".

(8) In sub-paragraph (ii), for "such a scheme" there shall be substituted "a scheme such as is mentioned in sub-paragraph (i) or (ia)".

(9) The amendments made by paragraphs (1) to (4) of this Resolution shall have effect in relation to the exercise of an option on or after 9th April 2003 and the other amendments made by this Resolution shall have effect in relation to shares acquired on or after that date.

And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.