OpenLegislation

Paragraph 40

United Kingdom

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

The option must take the form of a written agreement between the person granting the option and the employee which meets the following requirements.

(2)

The agreement must state—

(a)

the date on which the option is granted;

(b)

that it is granted under the provisions of this Schedule;

(c)

the number, or maximum number, of shares that may be acquired;

(d)

the price (if any) payable by the employee to acquire them, or the method by which that price is to be determined; and

(e)

when and how the option may be exercised.

(3)

The agreement must set out any conditions, such as performance conditions, affecting the terms or extent of the employee’s entitlement.

(4)

The agreement must contain details of any restrictions attaching to the shares.

(5)

Where the shares that may be acquired by the employee are subject to risk of forfeiture, the agreement must contain details of the conditions.

For this purpose shares are “subject to risk of forfeiture” if the interest that may be acquired is only conditional within the meaning of Section 140C of the Taxes Act 1988.

Notes on Schedule 14

Textual amendments

F1

Sch. 14 repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 8 Pt. 1 (with Sch. 7)