SCHEDULES
F1SCHEDULE 7DApproved share schemes and share incentives
Part 2Approved SAYE option schemes
Introductory
9
1
This Part of this Schedule forms part of the SAYE code (see section 516 of ITEPA 2003 (approved SAYE option schemes)).
2
Accordingly, expressions used in this Part of this Schedule and contained in the index at the end of Schedule 3 to that Act (approved SAYE option schemes) have the meaning indicated by the index.
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 an approved 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 approved, 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.
3
If the option—
a
was granted under the SAYE option scheme before the withdrawal of approval under paragraph 42 of Schedule 3 to ITEPA 2003, but
b
is exercised after the withdrawal of approval,
then, for the purposes of sub-paragraph (1)(b) above in its application to the option, the scheme is to be treated as if it were still approved at the time of the exercise.
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.
Sch. 7D inserted (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 6 para. 221 (with Sch. 7)