Part 5: Requirement for linked savings scheme
Paragraph 23: Requirements as to linked savings scheme: introduction
3307.This paragraph lists the requirements relating to linked savings schemes that must be met before a SAYE option scheme may be approved. This is partly derived from paragraph 1(1) of Schedule 9 to ICTA.
Paragraph 24: Payment for shares to be linked to approved savings schemes
3308.This paragraph derives from paragraph 16(1) of Schedule 9 to ICTA. It introduces the link with a certified contractual savings scheme, “the CCS scheme”, defined in sub-paragraph (2). The money used to exercise an option cannot exceed the repayments and interest from the CCS scheme.
3309.The contents of sub-paragraphs (2) and (3) of paragraph 16 of Schedule 9 to ICTA are spent.
3310.The words “to them”, which carried no obvious meaning and are therefore redundant, have been deleted.
Paragraph 25: Requirements as to contributions to savings schemes
3311.This paragraph derives from paragraph 24 of Schedule 9 to ICTA. It supplements the previous paragraph by ensuring that the contributions under the CCS scheme will result in a repayment that will meet the option price. It also sets a maximum and caps a minimum for monthly contributions.
3312.“The option price” has been defined as “the amount payable” to reflect the overall cost of the acquisition of shares on exercise of the option. A further clarification has been introduced, the reference to “the maximum number of shares” that can be acquired under the option, to identify the option price more precisely.
Paragraph 26: Repayments under a savings scheme: whether bonuses included
3313.This paragraph derives from part of paragraph 17 of Schedule 9 to ICTA. It also supplements paragraph 24 of this Schedule by determining what happens to the bonus element of repayments.
3314.There is a reference to the distinction between the maximum and other bonuses, which helps understanding of the application of paragraph 30 of this Schedule.
3315.To deal with any potential confusion in the references to schemes, a SAYE option scheme has been identified in sub-paragraph (3).