{
  "url": "https://openlegislation.uk/finance-act-2000/schedule-14/paragraph-47",
  "json_url": "https://openlegislation.uk/finance-act-2000/schedule-14/paragraph-47.json",
  "legislation": "ukpga/2000/17",
  "legislation_title": "Finance Act 2000",
  "legislation_url": "https://openlegislation.uk/finance-act-2000",
  "path": "schedule/14/paragraph/47",
  "kind": "paragraph",
  "number": "47",
  "heading": null,
  "text": "(1) The following are “disqualifying events\" in relation to a qualifying option—\n(a) the relevant company—\n(i) becoming a 51% subsidiary of another company, or\n(ii) coming under the control of another company (or of another company and any other person connected with that other company), without being a 51% subsidiary of that other company;\n(b) the relevant company ceasing to meet the trading activities requirement;\n(c) the employee ceasing to be an eligible employee in relation to the relevant company by reason of ceasing to meet—\n(i) the requirement in paragraph 28 (the employment requirement), or\n(ii) the requirement in paragraph 29 (the requirement as to commitment of working time);\n(d) any variation of the terms of the option the effect of which is—\n(i) to increase the market value of the shares that are the subject of the option, or\n(ii) that the requirements of this Schedule would no longer be met in relation to the option;\n(e) any alteration to the share capital of the relevant company that is within paragraph 49(1)—\n(i) where the effect of the alteration is that the requirements of this Schedule would no longer be met in relation to the option, or\n(ii) where the effect of the alteration is to increase the market value of the shares that are the subject of the qualifying option and paragraph 49(2) applies to the alteration;\n(f) a conversion of any of the shares to which the option relates into shares of a different class, except in a case within paragraph 50; and\n(g) the grant to the employee of a relevant CSOP option, if immediately after it is granted the employee holds unexercised employee options in respect of shares with a total value of more than £100,000.\n(2) A disqualifying event is treated as occurring in relation to a qualifying option if—\n(a) the relevant company was a qualifying company at the time the option was granted by reason only of preparations to carry on a qualifying trade, and\n(b) either—\n(i) the preparations cease to be carried on, or\n(ii) the period of two years from the grant of the original option comes to an end,\nwithout the relevant company or, if it is the parent company of a group, any group company beginning to carry on that qualifying trade.\n(3) A disqualifying event is also treated as occurring in relation to a qualifying option if in any tax year the employee’s relevant working time amounts to less than 25 hours a week or, if less, 75% of his working time.\n(4) This paragraph is supplemented by the following provisions—\nparagraph 48 (company reorganisation);\nparagraph 49 (alterations of share capital);\nparagraph 50 (conversion of shares);\nparagraph 51 (grant of CSOP option); and\nparagraph 52 (actual relevant working time).",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Sch. 14 para. 47(1)(e) substituted (11.5.2001 with effect as mentioned in Sch. 14 para. 13(3) of the amending Act) by 2001 c. 9, s. 62, Sch. 14 paras. 9, 13(3)"
    }
  ],
  "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/47",
    "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."
}