SCHEDULES

SCHEDULE 8Employee share schemes

PART 2SAYE option schemes

Amendments to Chapter 7 of Part 7 of ITEPA 2003

108

For paragraph 5 (general restriction on contents of scheme) substitute—

5

1

The purpose of the scheme must be to provide, in accordance with this Schedule, benefits for employees and directors in the form of share options.

2

The scheme must not provide benefits to employees or directors otherwise than in accordance with this Schedule.

3

For example, the scheme must not provide cash as an alternative to share options or shares which might otherwise be acquired by the exercise of share options.