{
  "url": "https://openlegislation.uk/finance-act-2000/schedule-14/paragraph-45",
  "json_url": "https://openlegislation.uk/finance-act-2000/schedule-14/paragraph-45.json",
  "legislation": "ukpga/2000/17",
  "legislation_title": "Finance Act 2000",
  "legislation_url": "https://openlegislation.uk/finance-act-2000",
  "path": "schedule/14/paragraph/45",
  "kind": "paragraph",
  "number": "45",
  "heading": null,
  "text": "(1) This paragraph applies if the option is to acquire shares at less than their market value—\n(a) at the time the option is granted, or\n(b) if it is a replacement option, at the time the original option was granted.\n(2) In that case for the purposes of section 135 of the Taxes Act 1988 (taxation of share options) the amount of the gain realised by the exercise of the option is taken to be the amount by which—\n(a) the chargeable market value, exceeds\n(b) the aggregate of—\n(i) the amount or value of the consideration given for the grant of the option, and\n(ii) the amount for which the shares are acquired.\n(3) For the purposes of this paragraph “the chargeable market value” means—\n(a) the market value of the shares—\n(i) at the time the option was granted, or\n(ii) if it is a replacement value, at the time the original option was granted,\nor\n(b) if lower, the market value of the shares at the time the option is exercised.\n(4) If the chargeable market value does not exceed the aggregate of the amounts mentioned in sub-paragraph (2)(b)(i) and (ii), no amount is chargeable to income tax under section 135 of the Taxes Act 1988 (taxation of share options) in respect of the exercise of the option.\n(5) This paragraph has effect subject to paragraph 53 (effect of disqualifying event).",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Sch. 14 para. 45(2)-(4) substituted (11.5.2001 with effect as mentioned in Sch. 14 para. 13(2) of the amending Act) by 2001 c. 9, s. 62, Sch. 14 paras. 7, 13(2)"
    }
  ],
  "outstanding_effects": [
    {
      "type": "inserted",
      "affecting": "asp/2001/8",
      "affecting_title": "Regulation of Care (Scotland) Act 2001"
    }
  ],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2000/17/schedule/14/paragraph/45",
    "retrieved_at": "2026-10-29T09:21:00.128981+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}