NIM06913 - Examples - original share option acquired before 6 April 1999 and replaced with new option. Total discount of replacement option not substantially greater than total discount of the original option released.

  • 6 February 1999 - option A acquired
  • 10 April 2000 - option A released for option B
Date6/2/9910/4/0010/4/00
EventA acquiredA releasedB acquired
No. of shares10001000709
MV(£)100026802687
EP(£)10001000999
Discount(£)Nil16801688

The value of the total discount on option B is not substantially greater than the discount on option A and therefore the gains from the exercise of option B can be disregarded from NICs liability (paragraph 16A, Part 1X, Schedule 3, SSCR 2001).