Income Tax (Earnings and Pensions) Act 2003 Schedule 3 paragraph 1

Introduction to Schedule 3 SAYE option schemes

Schedule 3 paragraph 1 sets out the conditions that must be met for a Save As You Earn (SAYE) option scheme to qualify as a Schedule 3 SAYE option scheme, and outlines the role of HMRC in registering and overseeing such schemes.

• An SAYE option scheme qualifies as a Schedule 3 scheme only if it meets all the requirements set out in Parts 2 to 7 of Schedule 3, covering areas such as general rules, eligibility, qualifying shares, linked savings arrangements, share options, and option exchanges
• The scheme operator must give formal notice of the scheme to HMRC before it can be treated as a Schedule 3 SAYE option scheme
• Once proper notice has been given to HMRC, the scheme is recognised as a Schedule 3 SAYE option scheme
• HMRC has the power to enquire into any scheme and, if appropriate, decide that it should not be treated as a Schedule 3 SAYE option scheme