Income Tax (Earnings and Pensions) Act 2003 Schedule 4 paragraph 24

Exercise of options: ceasing to be director or employee

Paragraph 24 of Schedule 4 allows a CSOP scheme to permit individuals to exercise their share options after they have left their role as a full-time director or qualifying employee.

• A CSOP scheme may include provisions allowing share options to be exercised after the individual has ceased employment or directorship
• This applies to individuals who were either full-time directors or qualifying employees at the time the options were granted
• The term "qualifying employee" carries the same meaning as defined in the employment requirement under paragraph 8 of Schedule 4
• The inclusion of this provision is optional — the scheme may, but is not required to, allow post-departure exercise of options