Income Tax (Earnings and Pensions) Act 2003 Schedule 5 paragraph 36

Option to be capable of exercise within 10 years

Schedule 5 paragraph 36 sets out the requirement that a share option under an SAYE option scheme must be capable of being exercised within 10 years of being granted.

• The option must be capable of being exercised within 10 years from the date it was granted.
• If the exercise of the option depends on certain conditions being met, those conditions must themselves be capable of being fulfilled within the same 10-year period.
• Where conditions can be fulfilled within the 10-year window, the option is treated as being exercisable within that period.
• This requirement ensures that SAYE share options have a defined maximum lifespan and cannot remain open indefinitely.