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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: Employee control shares

Shares of a particular class are only “employee-control” shares, as defined in paragraph 22(2), if they are held by:

  • employees or directors (or former employees or directors) of the company concerned, or of a company under its control,
  • who, by virtue of their holding of shares of that class, are able to control the company.

The reference in paragraph 22(2) to “persons” includes a singular “person”.

Control for the purpose of paragraph 22(2), as for paragraphs 18 and 19, has the meaning given by Section 719 ITEPA. This means having the power to secure that the affairs of the company are conducted in accordance with that person’s wishes (see ETASSUM33050).

Non-voting shares will not be “employee-control” shares as they will not, by themselves, enable their holders to control a company.