The Competition and Markets Authority’s Subsidy Advice Unit (SAU) has published a report evaluating the proposed Life Sciences Large Investment Portfolio (LSLIP) scheme under section 52 of the Subsidy Control Act 2022 (SCA 2022), following a request from the Office for Life Sciences (OLS). The scheme (expected to run from October 2025–March 2030) proposes to provide subsidies through direct grants to companies investing over £250m in UK-based life sciences manufacturing or research and development (R&D), with an estimated budget of up to £570m and maximum individual grants of £130m. To qualify for the LSLIP scheme, companies must be UK-registered, wholly private-sector businesses operating in the relevant sectors. Eligible companies must demonstrate a planned investment portfolio of £250m or more over three years in UK life sciences manufacturing or R&D, with at least one eligible UK project commencing within 12 months. Companies must also provide three years of audited accounts and offer financial guarantees for any grants secured, while demonstrating a proven track record of successfully developing or manufacturing medicines or medical devices.

The Subsidy Advice Unit (SAU) has published a report in response to a request for advice from the Department for Energy Security and Net Zero (DESNZ) concerning its proposed Carbon Capture Use and Storage (CCUS) Transport and Storage Regulatory Investment Model Support Scheme. The report includes the SAU’s evaluation of DESNZ’s assessment of compliance of the proposed scheme with the requirements set out in the Subsidy Control Act 2022.

The Subsidy Advice Unit (SAU) has published a report, advising the Department for Energy Security and Net Zero (DESNZ) on the proposed Industrial Carbon Capture (ICC) and Waste ICC subsidy schemes. The report evaluates DESNZ's assessment of compliance with the Subsidy Control Act 2022. It identified positive features in DESNZ's assessment, including clear descriptions of market failures and evidence of how the subsidy would influence beneficiaries' economic behaviour. However, the SAU also noted areas for improvement, suggesting that the assessment should provide more details on how negotiations with beneficiaries resulted in the minimum necessary revenue support.

The SAU (Subsidy Advice Unit) has published a report in response to the Welsh Government’s proposed subsidy to Cardiff International Airport Limited (CIAL). The report is an evaluation by SAU under the Subsidy Control Act 2022. The evaluation identifies policy objectives. It seeks to ensure that the subsidy is designed to create the right incentives, and it also considers the distortive impact the subsidy may have.

[Letter to be printed on company headed paper] [Insert name of Company] SAYE share option scheme (the Scheme) Application form You have been invited to apply for a three- or five-year option (the Option) to acquire ordinary shares in [insert name of Company] (the Company and shares respectively) under the rules of the Scheme. The closing date for returning your Application Form is [insert closing date]. If you are unfamiliar with the Scheme, you should consult the explanatory brochure, which summarises the rules of the Scheme and sets out the principal terms of the savings contract prospectus (the Prospectus). Both the explanatory brochure and the Prospectus are [enclosed OR available on request from [insert name of administrator] OR can be viewed online at www.[insert web address]]. When completing this form, please use block capitals and read the accompanying notes carefully 1 Address and personal details Title Surname First name(s) Address Postcode Employing

[INSERT NAME OF COMPANY] SAYE SHARE OPTION SCHEME (THE SCHEME) EXPLANATORY BOOKLET What is an SAYE share option scheme? Save As You Earn (SAYE) is a special type of share option scheme which is governed by statute and can deliver the following tax advantages in relation to each option granted under it: • no tax on the grant of the option • no tax on the exercise of the option (provided that it is exercised in specified circumstances referred to below) • [no tax on the discount to the price you pay to buy the shares under option] [delete if necessary] • [no tax on any interest or cash bonus paid over the term of the savings contract] [amend as necessary] The Scheme works by offering you an option to buy ordinary shares (‘Shares’) in [insert name of company] (the ‘Company’) at a price per Share which is set at [the current market value of a Share OR a discount of [insert percentage]% to the current Share price] (the Exercise Price) at the end of a [insert three or five]-year savings period using the monthly

[Letter to be printed on company headed paper] [insert date] [insert employee’s address] [INSERT NAME OF COMPANY] SAYE SHARE OPTION SCHEME (THE SCHEME) LETTER OF INVITATION Dear colleague, I am pleased to tell you that all employees who [have [insert number of months of qualifying period] months of service OR have been employed with the group since [insert date from when qualifying period began]] are invited to apply for a [3 OR 5] year option to acquire ordinary shares of (insert nominal value) in [insert name of company] (the Company) under the rules of the Scheme. You are therefore eligible to participate in this operation of the Scheme. Should you wish to participate in the Scheme and apply for an option under the Scheme, you will need to complete the enclosed Application Form. In doing so you will agree to enter into the linked savings contract, the terms of which are set out in the enclosed Prospectus which has been issued by [insert name of bank/building society/authorised European savings institution]. This invitation will remain open from [insert date]

[INSERT NAME OF COMPANY] SAYE share option scheme (the Scheme) Notice of exercise of option To: the [Secretary OR Administrator] Of: [insert address] 1 I am the holder of the following SAYE share option over ordinary shares of [insert nominal value of shares] in [insert name of company whose shares are under option] (the ‘Company’) granted to me under the Scheme: Date of grant: Number of shares: Exercise price: Savings period start date: Unique SAYE account number: 2 I wish to exercise the above option over either: All the shares The following number of shares Tick here: or

This option certificate is based in part on the HMRC precedent and contains the information required to confirm the grant of a save as you earn (SAYE) option to a participant. [To be printed on company/administrator headed paper] [Insert name and employee’s address] [INSERT NAME OF COMPANY GRANTING SAYE OPTIONS] SAYE option scheme Option certificate Further to your application, this is to certify that you have been granted an Option to acquire ordinary shares in [insert name of company granting

[Approved by resolution of the shareholders on [insert date of shareholder approval]] Adopted by the Directors on [insert date of board resolution] Registered with HM Revenue & Customs on [insert date] under number [insert HMRC registration number] Contents 1. Definitions 2. Invitations and applications to apply for options 3. Scaling down 4. Grant of options 5. Limitations on grants 6. Exercise and lapse of options 7. Takeovers and liquidations 8. Variation of share capital 9. Manner of exercise of options 10. Relationship with contract of employment 11. Administration and amendment 12. Personal data 13. NOtices 14. Third party rights 15. Termination of the scheme 16. GOVERNING LAW AND Jurisdiction 1 Definitions [Admission Date • is [insert date]] Adoption Date • means the date of adoption of the Scheme by the Directors; Appropriate Period • is the period determined in accordance with paragraph 38(3) of Schedule 3; Associated Company • has the meaning given in paragraph 47 of Schedule 3; Bonus Date • means the earliest date on which a bonus is payable: (a) under a three-year Savings Contract, following 36 monthly payments, or (b) under a five-year Savings Contract, following 60 monthly payments; Bound or Entitled • means bound or entitled to acquire shares in the Company under sections 979 to

Where an employee is granted a share option under a Schedule 3 save as you earn (SAYE) option scheme, the employee benefits from the following tax advantages provided that they exercise the option in one of the circumstances prescribed by the legislation: • no income tax on option grant • no income tax on option exercise • no income tax on any discount in the exercise price (SAYE options can be granted with a discount of up to 20% to the market value of the shares at the award date) • no income tax on any savings bonus paid on the bonus date or, if the savings contract is terminated early, on any interest payable by the savings carrier under the savings contract • no National Insurance contributions (NICs) or apprenticeship levy, and • capital gains tax (CGT) on disposal of the shares on gains in excess of the individual’s annual exempt allowance SAYE share option schemes have proven extremely popular historically as there is perceived to be 'no

This Practice Note covers the following topics: • the law governing eligibility for companies to operate a save as you earn (SAYE) scheme • requirements and timing • the aims of the SAYE legislation • the legislative requirements for shares under SAYE schemes, including: ◦ requirement for shares to form part of 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 ◦ issues for jointly owned companies ◦ when is a company listed on a recognized stock exchange? ◦ fully paid up and redeemable shares, and ◦ requirements if there is more than one class of ordinary shares • checks and declarations regarding the shares, and • references to shares in the SAYE scheme For further information on SAYE schemes generally, see Practice Note: How SAYE schemes work