Income Tax (Earnings and Pensions) Act 2003 section 35

Time when scheme-related employment ends [ITEPA 2003 Sch 3 para 35]

Section 35 defines when a participant in a SAYE option scheme is treated as having ended their scheme-related employment, for the purposes of exercising options after leaving.

• A participant is normally treated as ceasing scheme-related employment on the date their specific office or employment terminates.
• If the participant continues to work for the scheme organiser or an associated company after their particular role ends, they are not treated as having left until they stop holding any such position within the group.
• Two companies are "associated" if one controls the other or both are controlled by the same person or persons, with "control" determined under sections 450 and 451 of the Corporation Tax Act 2010 (the close company control test).
• These rules do not apply where a participant's scheme-related employment ends on their death — in that case, separate provisions under paragraph 32 apply instead.