{
  "url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/section-532",
  "json_url": "https://openlegislation.uk/income-tax-earnings-and-pensions-act-2003/section-532.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": "section/532",
  "kind": "section",
  "number": "532",
  "heading": "Modified tax consequences following disqualifying events",
  "text": "(1) This section applies where—\n(a) a disqualifying event (see section 533) occurs in relation to a qualifying option before the option is exercised, and\n(b) the option is exercised later than 90 days after the day on which the event occurred.\n(2) If the option is within section 530(1) (option to acquire shares at market value), the section 476 gain is—\nPEG-ACO(see subsection (4)).\n(3) If the option is within section 531(1) (option to acquire shares at less than market value), the section 476 gain is—\n(CMV+PEG)-(ACO+ACS)(see subsection (4)).\n(4) For the purposes of subsections (2) and (3)—\nACO is the amount or value of the consideration given for the grant of the option,\nACS is the amount, if any, for which the shares are acquired,\nCMV is the chargeable market value (as defined by section 531(3)), and\nPEG is the post-event gain, that is the amount (if any) by which the market value of the shares at the time when the option is exercised exceeds their market value immediately before the disqualifying event.\n(4A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(5) In subsections (2) and (3) “the section 476 gain” means the amount under section 478 (amount of charge under section 476) is to be regarded as the taxable amount for the purposes of section 476 in respect of the acquisition of the shares pursuant to the option.\n(6) Nothing in the following provisions—\n(a) subsections (2) and (3) above, or\n(b) sections 530 and 531,\napplies if the amount that counts as employment income by virtue of section 476 in respect of the exercise of the option would, in the absence of those provisions, be less than the amount that counts as such income as a result of those provisions.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Word in s. 532(1)(b) substituted (with effect in accordance with Sch. 2 para. 94(2) of the amending Act) by Finance Act 2013 (c. 29), Sch. 2 para. 94(1)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 532(5) substituted (1.9.2013) by Finance Act 2013 (c. 29), Sch. 23 paras. 14(3), 38; S.I. 2013/1755, art. 2"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 532(5) substituted (1.9.2003) by Finance Act 2003 (c. 14), Sch. 22 para. 38(1)(2); S.I. 2003/1997, art. 2"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2003/1/section/532",
    "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."
}