Income Tax (Earnings and Pensions) Act 2003

Part 1 U.K.Introduction

Approval of SAYE option schemesU.K.

1(1)This Schedule makes provision for the approval of SAYE option schemes by the Inland Revenue.U.K.

(2)Parts 2 to 7 of this Schedule contain requirements that have to be met in order for schemes to be approved under this Schedule.

(3)The requirements consist of general requirements (see Part 2) and requirements as to—

  • the eligibility of individuals to participate in a scheme (see Part 3),

  • the shares to which schemes can apply (see Part 4),

  • the existence of a linked savings scheme (see Part 5),

  • the share options that may be granted under the scheme (see Part 6), and

  • the exchange of share options (see Part 7).

(4)Part 8 of this Schedule deals with the approval of schemes and the withdrawal of approval.

SAYE option schemesU.K.

2(1)In the SAYE code an “SAYE option scheme” means (in accordance with section 516(4)) a scheme established by a company which provides—U.K.

(a)for share options to be granted to employees and directors, and

(b)for the shares acquired by the exercise of the share options to be paid for in the way mentioned in paragraph 24 (payments for shares to be linked to approved savings schemes).

(2)In the SAYE code, in relation to an SAYE option scheme—

  • participant” means an individual who has been granted (but has not yet exercised) share options under the scheme (“the options”);

  • participate” means obtain and exercise share options under the scheme;

  • the scheme organiser” means the company which has established the scheme.

Group schemesU.K.

3(1)An SAYE option scheme established by a company that controls one or more other companies (a “parent scheme company”) may extend to all or any of those other companies.U.K.

(2)In the SAYE code an SAYE option scheme established by a parent scheme company which so extends is called a “group scheme”.

(3)In relation to a group scheme a “constituent company” means—

(a)the parent scheme company, or

(b)any other company to which for the time being the scheme is expressed to extend.

(4)Paragraph 46 deals with jointly owned companies and companies controlled by them.