F1SCHEDULE 7D... Share schemes and share incentives
Part 2Schedule 3SAYE option schemes
Market value rule not to apply
10
(1)
This paragraph applies where—
(a)
a share option (“the option”) has been granted to an individual—
(i)
in accordance with the provisions of F2a Schedule 3 SAYE option scheme, and
(ii)
by reason of the individual’s office or employment as a director or employee of a company,
(b)
the individual exercises the option in accordance with the provisions of the SAYE option scheme at a time when the scheme is F3a Schedule 3 SAYE option scheme, and
(c)
condition A or condition B in section 519(2) or (3) of ITEPA 2003 (no charge in respect of exercise of option) is met.
(2)
The company mentioned in sub-paragraph (1)(a)(ii) may be—
(a)
the company whose shares are the subject of the option, or
(b)
some other company.
F4(3)
Sub-paragraph (3A) applies for the purposes of sub-paragraph (1)(b) if—
(a)
the SAYE option scheme is not to be a Schedule 3 SAYE option scheme by virtue of paragraph 40H or 40I of Schedule 3 to ITEPA 2003, and
(b)
the option was granted before, but exercised at or after, the time mentioned in paragraph 40H(2)(a)(i) or (ii) or 40I(7)(a)(i) or (ii) of that Schedule (as the case may be).
(3A)
The scheme is to be taken still to be a Schedule 3 SAYE option scheme when the option is exercised.
(4)
Section 17(1) (disposals and acquisitions treated as made at market value) shall not apply in calculating the consideration for—
(a)
the individual’s acquisition of shares by the exercise of the option, or
(b)
any corresponding disposal of those shares to the individual.
(5)
References in sub-paragraphs (1)(b) and (4) above to the individual include references to a person exercising the option in accordance with provision included in the scheme by virtue of paragraph 32 of Schedule 3 to ITEPA 2003 (exercise of options: death); and sub-paragraph (1)(c) above does not apply in relation to a person so exercising the option.