Finance Act 2003

Part 2 U.K. SAYE option schemes

Introductory U.K.

9 U.K. Schedule 3 to the Income Tax (Earnings and Pensions) Act 2003 (c. 1) (approved SAYE option schemes) is amended as follows.

Minor correction U.K.

10 U.K. In paragraph 25(3)(a) (limit on contributions under CCS schemes linked to approved SAYE schemes), after “SAYE” insert “ option ”.

Exercise of options: scheme-related employment ends because of change of control or transfer U.K.

11 (1) Paragraph 34 (exercise of options: scheme-related employment ends) is amended as follows. U.K.

(2) In sub-paragraph (2)(a), after “1996” insert “ or ER(NI)O 1996 ”.

(3) In sub-paragraph (5)—

(a) for “provide that,” substitute “ make provision about the time when the options may be exercised ”, and

(b) omit the words following paragraph (b).

(4) After that sub-paragraph insert—

“(5A) If the scheme makes provision by virtue of sub-paragraph (5), the provision must be either—

(a) that the options may be exercised within 6 months after the termination date, or

(b) that the options may be exercised within 6 months after the date (if any) when P ceases to hold the employment which (before the termination date) was the scheme-related employment for a reason within sub-paragraph (2)(a) or (b).”.

Alteration of schemes U.K.

12 (1) Paragraph 42 (withdrawal of approval) is amended as follows. U.K.

(2) In sub-paragraph (2), after “to be met;” insert—

“(aa) an alteration is made in a key feature of the scheme without the approval of the Inland Revenue;”.

(3) After that sub-paragraph insert—

“(2A) For the purposes of sub-paragraph (2)(aa) the Inland Revenue may not withhold their approval unless it appears to them at the time in question that the scheme as proposed to be altered would not then be approved on an application under paragraph 40.

(2B) For the purposes of that sub-paragraph a “key feature” of a scheme is a provision of the scheme which is necessary in order to meet the requirements of this Schedule.”.

(4) For paragraph 43 (approval ineffective after unapproved alteration and notice of decisions) and the heading before it substitute—

“Notice of decision about alteration U.K.

43 Where the Inland Revenue—

(a) have been requested to approve any alteration in a SAYE option scheme that has been approved, and

(b) have decided whether or not to approve the alteration,

they must give notice of their decision to the scheme organiser.”.

(5) For paragraph 44(1)(b) (appeal against decision not to approve alteration) substitute—

“(b) decide to refuse approval under paragraph 42(2)(aa).”.