26(1)M1Subject to paragraph 8 above, every person who—
(a)is [F1an employee] or a full-time director of the grantor or, in the case of a group scheme, a participating company, and
(b)has been such an employee or director at all times during a qualifying period not exceeding five years, and
(c)is chargeable to tax in respect of his office or employment under Case I of Schedule E,
must be eligible to participate in the scheme, that is to say, to obtain and exercise rights under it, on similar terms, and those who do participate in the scheme must actually do so on similar terms.
(2)For the purposes of sub-paragraph (1) above, the fact that the rights to be obtained by the persons participating in a scheme vary according to the levels of their remuneration, the length of their service or similar factors shall not be regarded as meaning that they are not eligible to participate in the scheme on similar terms or do not actually do so.
(3)M2Except as provided by paragraph 19 above or pursuant to such a provision as is referred to in paragraph 21(1)(e) [F2or (f)] above, a person must not be eligible to participate in the scheme at any time unless he is at that time a director or employee of the grantor or, in the case of a group scheme, of a participating company.
Textual Amendments
F1Words in Sch. 9 para. 26(1)(a) substituted (with effect in accordance with s. 137(7) of the amending Act) by Finance Act 1995 (c. 4), s. 137(2)
F2Words in Sch. 9 para. 26(3) inserted (29.4.1996) by Finance Act 1996 (c. 8), s. 113(3)
Marginal Citations
M1Source—1980 Sch.10 20; 1984 s.39(6); 1986 s.25(7)
M2Source—1980 Sch.10 21; 1986 s.25(6)