Income Tax (Earnings and Pensions) Act 2003 section 71-72

Approved SAYE option schemes [ITEPA 2003 Sch 7 paras 71-72]

Sections 71–72 deal with the transitional treatment of savings-related share option schemes that were approved under the old tax legislation (Schedule 9 to ICTA) before 6 April 2003, ensuring they are recognised as approved SAYE option schemes under the new ITEPA 2003 framework.

• Any savings-related share option scheme approved under the old rules before 6 April 2003 is automatically treated as an approved SAYE option scheme under the new Schedule 3 to ITEPA 2003, even if the scheme does not fully conform with the new requirements.
• Approval can still be withdrawn or lost under the new rules, and approved alterations to the scheme remain possible, but an event will not count as disqualifying under the new rules if it would not have breached the original approval requirements under Schedule 9 to ICTA.
• Any scheme provisions included, and any rights obtained, before 6 April 2003 in accordance with the old Schedule 9 rules remain valid and are not affected by the new Act.
• References in the SAYE code to share options granted under an approved SAYE scheme include rights to acquire shares obtained before 6 April 2003 under the old approved schemes, and old scheme references to persons taxable under Case I of Schedule E are read as including persons whose earnings fall within the corresponding new provision.