Paragraph 35

United Kingdom

(1)

This paragraph applies for the purposes of paragraph 34 (exercise of options: scheme-related employment ends).

(2)

Unless sub-paragraph (3) applies, a participant (“P”) is to be regarded as ceasing to hold scheme-related employment on the date when the office or employment in question terminates.

(3)

If—

(a)

P’s scheme-related employment terminates, but

(b)

P continues to hold an office or employment in the scheme organiser or any associated company,

P is to be regarded as ceasing to hold the scheme-related employment on the date when P no longer holds any office or employment within paragraph (b), and not at any earlier time.

(4)

For the purposes of sub-paragraph (3) one company is an “associated company” of another company if—

(a)

one has control of the other, or

(b)

both are under the control of the same person or persons;

and for this purpose the question of whether a person controls a company is to be determined in accordance with F1sections 450 and 451 of CTA 2010 (“control” in the context of close companies).

(5)

Nothing in paragraph 34 or this paragraph applies where a person’s scheme-related employment terminates on that person’s death (see instead paragraph 32).

(6)

In this paragraph “scheme-related employment” has the same meaning as in paragraph 34.

Annotations

Textual amendments

F1: Words in Sch. 3 para. 35(4) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 397(4) (with Sch. 2)

Notes on Schedule 3

Textual amendments

F1: Word in Sch. 3 title omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 103, 146 (with Sch. 8 paras. 147-157)