Share Scheme Manual - SSM12.4
Deferment of tax on option gains: value of shares
You can accept that the option exercise price is not less
than the value of shares of the same class at the date the option
was granted, if
- the option exercise price was calculated by
reference to the value of the shares at a date or dates within the
period of thirty days before the grant
and
- the exercise price is not less than that value.
(If the option was granted before 6 April 1982 it need only be 90
per cent of that value.)
Adjustment to option: ICTA88/S137 (2)
The option exercise price may have been reduced between the date
the option was granted and the date it was exercised. This does not
matter, provided
- the option exercise price was acceptable before
the reduction
and
- the reduction was made only to take account of a
variation in the share capital of the company issuing the shares,
for example a bonus issue or a rights issue.
