What did Schedule 3 paragraph 12 of ITEPA 2003 originally define?

Schedule 3 paragraph 12 originally defined 'material interest' for SAYE option schemes. This concept determined whether a person held a significant shareholding or control in a company, which could affect their eligibility to participate in or benefit from tax-advantaged Save As You Earn share schemes.

Has Schedule 3 paragraph 12 of ITEPA 2003 been repealed?

Yes, the entire paragraph was repealed by Finance Act 2013, Schedule 2, paragraph 41. This repeal formed part of a wider set of reforms to the tax-advantaged employee share scheme rules. As a result, Schedule 3 paragraph 12 no longer has any operative effect under United Kingdom law.

Where should practitioners now look for SAYE scheme eligibility rules after this repeal?

Practitioners dealing with SAYE option schemes should refer to the current legislation as amended by the Finance Act 2013. The replacement provisions introduced by the 2013 reforms now govern any applicable requirements or restrictions relating to participants' interests in scheme companies.

Why was the concept of material interest important for SAYE option schemes?

Having a material interest in a company could disqualify an individual from participating in or benefiting from SAYE option schemes. The definition assessed whether a person held significant shareholding or control, ensuring schemes were directed at employees without substantial existing ownership stakes.

Income Tax (Earnings and Pensions) Act 2003 Schedule 3 paragraph 12

Meaning of "material interest"

Schedule 3 paragraph 12 previously defined what constituted a "material interest" for the purposes of SAYE option schemes, but has been repealed.

This paragraph originally provided a definition of "material interest" relevant to SAYE (Save As You Earn) option schemes under Schedule 3.
The entire paragraph was repealed by Finance Act 2013, Schedule 2, paragraph 41.
The concept of "material interest" was used to determine whether a person had a significant shareholding or control in a company, which could affect eligibility for scheme benefits.
Any current queries regarding material interest in the context of share schemes should be considered under the replacement provisions introduced by the Finance Act 2013 reforms.

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