Part 7Employment income: income and exemptions relating to securities

Chapter 7Approved SAYE option schemes

Introduction

516Approved SAYE option schemes

(1)

This Chapter provides—

(a)

for the approval of SAYE option schemes by F1an officer of Revenue and Customs , and

(b)

for exemptions from income tax in connection with share options granted under those schemes.

(2)

Schedule 3 contains the requirements that have to be met for an SAYE option scheme to be approved, together with the approval procedure.

(3)

The provisions of—

(a)

this and the following sections of this Chapter,

(b)

Schedule 3, and

(c)

Part 2 of Schedule 7D to TCGA 1992 (approved SAYE option schemes: amount of consideration on exercise of option),

together constitute “the SAYE code”.

(4)

In the SAYE code—

“approved” means approved by F1an officer of Revenue and Customs under Schedule 3 (see paragraph 1 of the Schedule);

“SAYE option scheme” means a scheme (commonly referred to as an SAYE share option scheme) which is established by a company and provides—

(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 of Schedule 3 (payments for shares to be linked to F2approved savings arrangements );

“share option” means a right to acquire shares in a company;

“shares” includes stock.

(5)

Other expressions used in the SAYE code and contained in the index at the end of Schedule 3 have the meaning indicated by the index.