EIM45460 - Employment income provided through third parties: exclusions: earmarking for employee share and share option schemes: 'exercise' of options

Sections 554L to 554N and 554Z7 ITEPA 2003

Part 7A ITEPA 2003 refers in various places to an option being ‘exercised� or ‘exercisable�.

»Ê¹ÚÌåÓýappse terms respectively cover cases in which the option holder actively does (or can) exercise the option.

But they are not limited to such cases.

»Ê¹ÚÌåÓýappy also cover cases in which the option holder does not necessarily have to take any action in order to exercise the option.

For example, ‘exercise� could involve the automatic receipt of shares or cash at the end of a vesting period.