{
  "url": "https://openlegislation.uk/finance-act-2000/schedule-14/paragraph-53",
  "json_url": "https://openlegislation.uk/finance-act-2000/schedule-14/paragraph-53.json",
  "legislation": "ukpga/2000/17",
  "legislation_title": "Finance Act 2000",
  "legislation_url": "https://openlegislation.uk/finance-act-2000",
  "path": "schedule/14/paragraph/53",
  "kind": "paragraph",
  "number": "53",
  "heading": null,
  "text": "(1) This paragraph applies where—\n(a) a disqualifying event occurs in relation to a qualifying option before the option is exercised, and\n(b) the option is not exercised within 40 days of that event.\n(2) Where paragraph 44 applies (option to acquire shares at market value), then for the purposes of section 135 of the Taxes Act 1988 (taxation of share options) the amount of the gain realised on the exercise of the option is taken to be—\n(a) the post-event gain (if any), less\n(b) the amount or value of the consideration given for the grant of the option.\n(2A) Where paragraph 45 applies (option to acquire shares at less than market value), then for the purposes of section 135 of the Taxes Act 1988 (taxation of share options) the amount of the gain realised on the exercise of the option is taken to be—\n(a) the aggregate of—\n(i) the chargeable market value (within the meaning of that paragraph), and\n(ii) the post-event gain, less\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(2B) Where paragraph 46 applies (option to acquire shares at nil cost), then for the purposes of section 135 of the Taxes Act 1988 (taxation of share options) the amount of the gain realised on the exercise of the option is taken to be—\n(a) the aggregate of—\n(i) the chargeable market value (within the meaning of paragraph 45), and\n(ii) the post-event gain, less\n(b) the amount or value of the consideration given for the grant of the option.\n(2C) For the purposes of this paragraph “the post-event gain” means the amount (if any) by which—\n(a) the market value of the shares when the option is exercised, exceeds\n(b) their market value immediately before the disqualifying event.\n(2D) Where—\n(a) the amount of the gain realised on the exercise of an option falls to be determined under sub-paragraph (2), (2A) or (2B) above, and\n(b) the amount mentioned in paragraph (b) of the sub-paragraph concerned exceeds the amount mentioned in paragraph (a) of that sub-paragraph,\nno 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(3) Paragraphs 44 to 46 and sub-paragraphs (2), (2A) and (2B) of this paragraph do not apply if the amount chargeable under section 135 of the Taxes Act 1988 on the exercise of the option would, in the absence of those provisions, be less than the amount so chargeable by virtue of those provisions.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Sch. 14 para. 53(2)-(2D) substituted (11.5.2001 with effect as mentioned in Sch. 14 para. 13(2) of the amending Act) for Sch. 14 para. 53(2) by 2001 c. 9, s. 62, Sch. 14 paras. 11(1)(2), 13(2)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in Sch. 14 para. 53(3) 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. 11(3), 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/53",
    "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."
}