ETASSUM35350 - Schedule 3 SAYE option schemes: Requirements relating to share options: Exercise rights: Exercise by personal representatives

Options may be exercised after the death of the option holder either by his personal representatives or by the beneficiaries of his estate. No income tax charge will arise when an option is exercised following the death of the option holder, regardless of the length of time between grant and exercise.

Capital gains tax liability may arise on the subsequent sale of the shares by the personal representatives or beneficiaries. The cost of acquisition will be the market value of the option at the date of death plus the option exercise price paid for the shares by the personal representatives.