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HMRC internal manual

Employee Tax Advantaged Share Scheme User Manual

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HM Revenue & Customs
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Schedule 3 SAYE option schemes: Requirements relating to share options – The exercise price: Restrictions on shares and MV post FA13

Following changes made by FA13 all tax-advantaged plans are able to use restricted shares.

FA13 inserted a definition of what constitutes a ‘restriction’ on shares at paragraph 48(3), (see ). 

At the time to option is granted, participants must be informed whether eligible shares are subject to any restriction (Paragraph 28(5)(a)), and if so, must be provided with details of the restriction.

For the purposes of determining the exercise price and on a variation in share capital, the market value of shares subject to a restriction is to be determined as if they were not subject to a restriction (paragraph 28(6)).