SCHEDULES

SCHEDULE 3Approved SAYE option schemes

Part 6Requirements etc. relating to share options

Time when scheme-related employment ends

35

1

This paragraph applies for the purposes of paragraph 34 (exercise of options: scheme-related employment ends).

2

Unless sub-paragraph (3) applies, a participant (“P”) is to be regarded as ceasing to hold scheme-related employment on the date when the office or employment in question terminates.

3

If—

a

P’s scheme-related employment terminates, but

b

P continues to hold an office or employment in the scheme organiser or any associated company,

P is to be regarded as ceasing to hold the scheme-related employment on the date when P no longer holds any office or employment within paragraph (b), and not at any earlier time.

4

For the purposes of sub-paragraph (3) one company is an “associated company” of another company if—

a

one has control of the other, or

b

both are under the control of the same person or persons;

and for this purpose the question of whether a person controls a company is to be determined in accordance with section 416(2) to (6) of ICTA (“control” in the context of close companies).

5

Nothing in paragraph 34 or this paragraph applies where a person’s scheme-related employment terminates on that person’s death (see instead paragraph 32).

6

In this paragraph “scheme-related employment” has the same meaning as in paragraph 34.