{
  "url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/schedule-3/paragraph-34",
  "json_url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/schedule-3/paragraph-34.json",
  "legislation": "ukpga/2003/1",
  "legislation_title": "Income Tax (Earnings and Pensions) Act 2003",
  "legislation_url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003",
  "path": "schedule/3/paragraph/34",
  "kind": "paragraph",
  "number": "34",
  "heading": null,
  "text": "(1) The scheme must provide that, if a participant (“P”) no longer holds scheme-related employment (see paragraph 35), the options are exercisable as set out in sub-paragraphs (2) to (4).\n(2) In a case where P ceases to hold the scheme-related employment because of—\n(a) injury or disability or redundancy within the meaning of ERA 1996 or ER(NI)O 1996 , ...\n(b) retirement ...,\n(c) a relevant transfer within the meaning of the Transfer of Undertakings (Protection of Employment) Regulations 2006, or\n(d) if P holds office or is employed in a company which is an associated company (as defined in paragraph 35(4)) of the scheme organiser, that company ceasing to be an associated company of the scheme organiser by reason of a change of control (as determined in accordance with sections 450 and 451 of CTA 2010),\nthe options may only be exercised within 6 months after the termination date.\n(3) In a case where P ceases to hold the scheme-related employment for any other reason, share options granted more than 3 years before the termination date either—\n(a) may not be exercised, or\n(b) may only be exercised within 6 months after the termination date,\naccording to which of these alternatives is specified in the scheme.\n(4) Subject to any provision made under sub-paragraph (5), in a case where P ceases to hold the scheme-related employment for any reason other than one within sub-paragraph (2)(a) to (d), share options granted 3 years or less before the termination date may not be exercised at all.\n(5) The scheme may make provision about the time when the options may be exercised in a case where P ceases to hold the scheme-related employment only because—\n(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(b) it relates to a business or part of a business which is transferred to a person who is not an associated company of the scheme organiser where the transfer is not a relevant transfer within the meaning of the Transfer of Undertakings (Protection of Employment) Regulations 2006.\n...\n(5A) If the scheme makes provision by virtue of sub-paragraph (5), the provision must be either—\n(a) that the options may be exercised within 6 months after the termination date, or\n(b) that the options may be exercised within 6 months after the date (if any) when P ceases to hold the employment which (before the termination date) was the scheme-related employment for a reason within sub-paragraph (2)(a) to (d).\n(6) This paragraph has effect subject to paragraph 30(1)(b) (options must not be capable of being exercised later than 6 months after bonus date).\n(7) In this paragraph—\n“scheme-related employment” means the office or employment by reference to which the person satisfies the condition in paragraph 10(1) (“the employment requirement”);\n“the termination date” means the date when P ceases to hold the scheme-related employment (see paragraph 35).",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in Sch. 3 para. 34(2)(a) inserted (10.7.2003) by Finance Act 2003 (c. 14), Sch. 21 para. 11(2)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Word in Sch. 3 para. 34(2) omitted (17.7.2013) by virtue of Finance Act 2013 (c. 29), Sch. 2 para. 23(2)(a) (with Sch. 2 para. 23(4))"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in Sch. 3 para. 34(2)(b) omitted (17.7.2013) by virtue of Finance Act 2013 (c. 29), Sch. 2 para. 12 (with Sch. 2 para. 17)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Sch. 3 para. 34(2)(c)(d) inserted (17.7.2013) by Finance Act 2013 (c. 29), Sch. 2 para. 23(2)(b) (with Sch. 2 para. 23(4))"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Words in Sch. 3 para. 34(4) substituted (17.7.2013) by Finance Act 2013 (c. 29), Sch. 2 para. 23(3) (with Sch. 2 para. 23(4))"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in Sch. 3 para. 34(5) substituted (10.7.2003) by Finance Act 2003 (c. 14), Sch. 21 para. 11(3)(a)"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Sch. 3 para. 34(5)(a) and word omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 113(a), 146 (with Sch. 8 paras. 147-157)"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Words in Sch. 3 para. 34(5)(b) inserted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 113(b), 146 (with Sch. 8 paras. 147-157)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Words in Sch. 3 para. 34(5) repealed (10.7.2003) by Finance Act 2003 (c. 14), Sch. 21 para. 11(3)(b), Sch. 43 Pt. 3(3)"
    },
    {
      "type": "F",
      "label": "F10",
      "text": "Sch. 3 para. 34(5A) inserted (10.7.2003) by Finance Act 2003 (c. 14), Sch. 21 para. 11(4)"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "Words in Sch. 3 para. 34(5A)(b) substituted (17.7.2013) by Finance Act 2013 (c. 29), Sch. 2 para. 23(3) (with Sch. 2 para. 23(4))"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2003/1/schedule/3/paragraph/34",
    "retrieved_at": "2026-10-29T09:18:42.395488+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."
}