Part 7Employment income: income and exemptions relating to securities

Chapter 7... SAYE option schemes

Introduction

516F1... SAYE option schemes

(1)

This Chapter provides—

F2(a)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)

for exemptions from income tax in connection with share options granted under F3SAYE option schemes which are Schedule 3 SAYE option schemes.

F4(2)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(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 (F5Schedule 3 SAYE option schemes: amount of consideration on exercise of option),

together constitute “the SAYE code”.

(4)

In the SAYE code—

F6...

“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 F7approved savings arrangements);

F8“Schedule 3 SAYE option scheme” is to be read in accordance with paragraph 1 and Part 8 of Schedule 3;

“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.