Share Scheme Manual - SSM12.3

Deferment of tax on option gains: cases to which it applies

The instalment treatment is only available if an option is actually exercised. It does not apply to assessments raised because of the assignment or release of the option, or in respect of any other event chargeable under ICTA88/S135. The exercise of an option granted in respect of an employment chargeable to tax under Case II or III of Schedule E may be charged to tax under ICTA88/S162 (SE3601 onwards). Instalment treatment is not available on the exercise of such an option.