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4. alterations in the terms of the option, the effect of which is to increase the value of the shares or to break the rules as to qualifying options;²⁰⁹
5. any relevant alteration in the share capital of the company;²¹⁰
6. any relevant conversion of the shares;²¹¹
7. granting the employee an option under another scheme if this would take the employee over the £100,000 maximum level.²¹²

The shares must be valued at the date of the disqualifying event.²¹³ Relief on the value down to that event continues to be available however any later increase in value is subject to a charge under part 5.²¹⁴

16A.9.2.2    Other Schedule E Share Option Rules

ITEPA part 7 chapter 3C which would otherwise deem a loan if the option price is below market value, is excluded.²¹⁵ However, the legislation makes it clear that nothing in the EMI code affects the operation of various provisions in part 7 which are listed as chapter 2–4, subject to what has just been said about 3C, and 5. So nothing in the new rules will prevent a charge from arising under section 476 on the release of rights attached to shares acquired under a qualifying option or where conditions on securities are removed and the charge arises under chapter 2 section 427 (ex TA 1988, section 140A) or, if there is a conversion coming within chapter 3 s 438 (ex TA 1988 section 140D).²¹⁶ There will also be a charge under , section 476 (ex 135) if a sum is received for the release of rights under the option itself.²¹⁷

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