# Income Tax (Earnings and Pensions) Act 2003, Paragraph 35

Extent: E+W+S+N.I.

(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 sections 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.

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Source: https://www.legislation.gov.uk/ukpga/2003/1/schedule/3/paragraph/35 (the official version)
Page: https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/schedule-3/paragraph-35
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.