SAYE—companies which qualify to operate an SAYE scheme
SAYE—companies which qualify to operate an SAYE scheme

The following Share Incentives practice note provides comprehensive and up to date legal information covering:

  • SAYE—companies which qualify to operate an SAYE scheme
  • The law governing eligibility to operate an SAYE scheme
  • Requirements and timing
  • The aims of the SAYE legislation
  • Legislative requirements for shares under SAYE schemes
  • Requirement for shares to form part of the ordinary share capital
  • Issues for group companies
  • Issues for a company which is controlled by another company
  • Issues for a company which is owned or controlled by a consortium
  • Issues for a company which is controlled by an unlisted company
  • More...

SAYE—companies which qualify to operate an SAYE scheme

This note covers the following topics:

  1. the law governing eligibility for companies to operate a save as you earn (SAYE) scheme

  2. requirements and timing

  3. the aims of the SAYE legislation

  4. the legislative requirements for shares under SAYE schemes, including:

    1. requirement for shares to form part of ordinary share capital

    2. issues for group companies

    3. issues for a company which is controlled by another company

    4. issues for a company which is owned or controlled by a consortium

    5. issues for a company which is controlled by an unlisted company

    6. issues for jointly owned companies

    7. when is a company listed on a recognized stock exchange?

    8. fully paid up and redeemable shares, and

    9. requirements if there is more than one class of ordinary shares

  5. checks and declarations regarding the shares, and

  6. references to shares in the SAYE scheme

For further information on SAYE schemes generally see: How SAYE schemes work and key features.

The law governing eligibility to operate an SAYE scheme

The legislation governing eligibility for companies to operate an SAYE scheme is set out in Part 4, Schedule 3 to the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003).

Requirements and timing

The scheme shares must generally meet the relevant requirements at the date of grant of all options and at the date of exercise of all options. Therefore, in practice they are met

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