SCHEDULES
F7SCHEDULE 7DF4... Share schemes and share incentives
Word in Sch. 7D heading omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 40, 89 (with Sch. 8 paras. 90-96)
Part 2F6Schedule 3SAYE option schemes
Words in Sch. 7D Pt. 2 heading substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 126, 146 (with Sch. 8 paras. 147-157)
Introductory
9
1
This Part of this Schedule forms part of the SAYE code (see section 516 of ITEPA 2003 ( F5... 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 ( F5... 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 F2a Schedule 3SAYE 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.
F13
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.
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)