Section 524 | No Charge In Respect Of Exercise Of Option | Income Tax Earnings And Pensions Act 2003 C1

524 No charge in respect of exercise of option

Income Tax (Earnings and Pensions) Act 2003 (2003 c 1) | Legislation

524 No charge in respect of exercise of option

(1) No liability to income tax arises in respect of the exercise of the share option if—

(a) the individual exercises it in accordance with the provisions of the CSOP scheme at a time when the scheme is [a Schedule 4 CSOP scheme], . . .

[(b) Condition A or B is met] [and

(c) the avoidance of tax or national insurance contributions is not the main purpose (or one of the main purposes) of any arrangements under which the option was granted or is exercised].

[(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)