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HMRC internal manual

Employee Tax Advantaged Share Scheme User Manual

Schedule 3 SAYE option schemes: Taxation: Introduction

This section explains the tax consequences for the various parties involved in the operation of Schedule 3 SAYE option schemes:

  • the employees and directors who participate in the scheme,
  • the grantor of the options, and
  • the scheme organiser (and other participating companies in group schemes).

Paragraph 2(2) Schedule 3 refers to the company which established the scheme as the “scheme organiser”, however this does not mean that this company must grant the options.

For example, if the exercise of the options is to be satisfied by the transfer of existing shares rather than the issue of new shares, the options may be granted by the holder of the existing shares such as the trustees of an employee benefit trust, if the scheme rules permit.