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HMRC internal manual

Employee Tax Advantaged Share Scheme User Manual

HM Revenue & Customs
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Schedule 3 SAYE option schemes: Taxation: Non-residents and share options - General

Often option holders who are non-resident at grant will be invited to participate on terms relevant to their country of residence, which will likely not accord with Schedule 3, nor be linked to an approved savings arrangement. In such instances options will be treated as non-tax advantaged and will be taxed in accordance with the usual provisions at Chapter 5 of Part 2 ITEPA, subject to Chapter 5B (ss41F-41L) of Part of the same Act (refer to ERSM162100).

If an option holder who is non-resident at grant has been granted an option under a Schedule 3 SAYE scheme, and has contributed monthly to a linked approved savings arrangement in accordance with the terms of the plan, then such options will be treated as tax advantaged and an income tax charge will not arise on exercise.