PAYE: special type of income: gains from share options: approved share option schemes and options granted before 27 November 1996
Section 700 ITEPA 2003
Certain shares are excluded from being assets for the purposes of Part 11 Chapter 4 ITEPA 2003 (see EIM11931). These include shares acquired by an employee:
- as a result of the exercise of an option obtained under a scheme approved under Schedule 3 ITEPA 2003 or Schedule 9 ICTA 1988;
- as a result of the exercise of an option under a scheme approved under Schedule 4 ITEPA 2003 but only in circumstances in which Condition A or B as set out in section 524(2) or (2A) ITEPA is met for shares acquired after 8 April 2003; and
- own company shares acquired by an employee on exercise of an option granted before 27 November 1996.
Own company shares
Shares are own company shares if they are shares in a company that:
- is the employer (the employer company)
- has control of the employer company, or
- either is, or has control of, a company that is a member of a consortium owning either the employer company or a company having control of the employer company.