Income Tax (Earnings and Pensions) Act 2003 Schedule 3 paragraph 48

Minor definitions

Paragraph 48 of Schedule 3 defines several key terms used throughout the Save As You Earn (SAYE) share option scheme rules, including what counts as a company, how market value is determined, what constitutes consortium ownership, and when shares are treated as subject to a restriction.

• A "certified SAYE savings arrangement" takes its meaning from section 703(1) of ITTOIA 2005, "company" means a body corporate, and "market value" has the same meaning as in Part 8 of TCGA 1992
• A company is a member of a consortium owning another company if it is one of a group of companies that together own at least 75% of the other company's ordinary share capital, and it individually owns at least 5% of that capital
• Shares are subject to a "restriction" if any contract, agreement, arrangement or condition imposes provisions equivalent to those described in subsections (2) to (4) of section 423 (restricted securities), reading references to employment-related securities as references to the shares
• These definitions underpin the operation of the SAYE code and ensure consistent interpretation of terms across the scheme rules