Paragraph 49

United Kingdom

(1)

An alteration of the share capital of the relevant company is within[F1this sub-paragraph]if—

(a)

it affects (or but for the occurrence of some other event would affect) the value of the shares which are the subject of the qualifying option, and

(b)

it consists of or includes—

(i)

the creation, variation or removal of a right relating to any shares in the relevant company,

(ii)

the imposition of a restriction relating to any such shares, or

(iii)

the variation or removal of a restriction to which any such shares are subject.

For this purpose references to restrictions relating to shares or to which shares are subject, or to rights relating to shares, include restrictions imposed or rights conferred by any contract or arrangement or in any other way.

F2(2)

This sub-paragraph applies to an alteration if—

(a)

it is not made by the relevant company for commercial reasons, or

(b)

the main purpose or one of the main purposes for making the alteration is to increase the market value of the shares which are the subject of the qualifying option.

Annotations

Textual amendments

F1: Words in Sch. 14 para. 49(1) substituted (11.5.2001 with effect as mentioned in 13(3) of the amending Act) by 2001 c. 9, s. 62, Sch. 14 paras. 10(1)(2), 13(3)
F2: Sch. 14 para. 49(2) substituted (11.5.2001 with effect as noted in 13(3)) for Sch. 14 para. 49(2)-(5) by 2001 c. 9, S.62, Sch. 14 paras. 10(1)(3), 13(3)

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F1: Sch. 14 repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 8 Pt. 1 (with Sch. 7)