{
  "url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/schedule-5/paragraph-7",
  "json_url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/schedule-5/paragraph-7.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/5/paragraph/7",
  "kind": "paragraph",
  "number": "7",
  "heading": null,
  "text": "(1) The total value of shares in the relevant company in respect of which unexercised qualifying options exist must not exceed—\n(a) £6 million, or\n(b) where the employer company is a specified Northern Ireland company, £3 million.\n(2) A share option cannot be a qualifying option if the applicable limit in sub-paragraph (1) is already exceeded at the time when it is granted.\n(3) If the grant of a share option causes that limit to be exceeded, the option cannot be a qualifying option so far as it relates to the excess.\n(4) If the grant of two or more options at the same time causes that limit to be exceeded, sub-paragraph (5) applies (but see sub-paragraph (5A)).\n(5) For the purpose of determining which part of each option relates to the excess, the amount of the excess is to be divided pro rata among the options according to the value of the shares in respect of which each option was granted.\n(5A) If—\n(a) the grant of two or more share options at the same time causes only the limit in paragraph 7(1)(b) to be exceeded, and\n(b) the employer company in respect of some of the share options is not a specified Northern Ireland company,\nthe share options in respect of which the employer company is a specified Northern Ireland company are, for the purposes of this paragraph, to be treated as having been granted before the other share options.\n(6) Paragraph 5(6) to (8) (determination of value of shares) apply for the purposes of this paragraph as they apply for the purposes of paragraph 5.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Sch. 5 para. 7(1)(a)(b) inserted (6.4.2026) by Finance Act 2026 (c. 11), s. 13(3)(a)(9)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Word in Sch. 5 para. 7(2) inserted (6.4.2026) by Finance Act 2026 (c. 11), s. 13(3)(b)(9)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in Sch. 5 para. 7(4) inserted (6.4.2026) by Finance Act 2026 (c. 11), s. 13(3)(c)(9)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Sch. 5 para. 7(5A) inserted (6.4.2026) by Finance Act 2026 (c. 11), s. 13(3)(d)(9)"
    }
  ],
  "outstanding_effects": [
    {
      "type": "words substituted",
      "affecting": "ukpga/2025/36",
      "affecting_title": "Employment Rights Act 2025"
    }
  ],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2003/1/schedule/5/paragraph/7",
    "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."
}