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HMRC internal manual

Employee Tax Advantaged Share Scheme User Manual

Schedule 3 SAYE option schemes: Shares to which schemes can apply: Introduction

Paragraph 17 imposes requirements on which shares can be used in Schedule 3 SAYE option schemes.

The relevant requirements concerning the shares which can be used (‘scheme shares’) are then set out in paragraphs 18- 20 and 22 * of Schedule 3.

The legislation aims to ensure that the scheme shares which participants will acquire under a tax advantaged share scheme are:

  • normal shares on normal terms (paragraphs 20 and 22),
  • in a company:


  • with which their employment can be identified (paragraph 18), and
  • that offers little scope for manipulating the value of the shares (paragraph 19).

  • Paragraph 21 was repealed by Schedule 2 to the Finance Act 2013 in relation to share options granted on or after 17 July 2013.