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Chapter ETASSUM32120

Document Cited in Related
Vincent
Published date26 August 2015
Record NumberETASSUM32120
CourtHM Revenue & Customs

The timing of the grant of options in relation to the entering into the related savings contract is not specified in the legislation. But the terms of the SAYE Prospectus make it clear that savings contracts can only be entered into by an individual “for the purpose of participating in a SAYE option scheme that meets the requirements of Schedule 3 of ITEPA 2003”. Participate is defined in Schedule 3 as “obtain and exercise share options under the scheme”. It follows therefore that the options will be granted at or before the time the related savings contract is entered into.

An undertaking to enter into a savings contract may be accepted as sufficient consideration, for contract law purposes, for the grant of a savings-related option. Although it is not a requirement, it is acceptable for scheme rules to provide that options can be granted by deed executed by the grantor of the option.

It is not acceptable for new options to be linked to existing savings contracts which originally related...

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