Taxes Consolidation Act 1997 Schedule 12A paragraph 20

Cessation due to injury, disability, redundancy, or retirement

Paragraph 20 sets out the rules governing what happens to a participant's rights under an approved share option scheme when that participant ceases to hold the relevant office or employment.

• Where a participant leaves due to injury, disability, redundancy, or retirement at the specified age, any rights must be exercised within six months of leaving.
• Where a participant leaves for any other reason within three years of obtaining the rights, those rights lapse and cannot be exercised.
• An exception to the three-year lapse rule applies where the scheme includes a provision of the kind described in paragraph 22(1)(e).
• Where a participant leaves for any other reason more than three years after obtaining the rights, the scheme must provide either that the rights lapse or that they must be exercised within six months of leaving.