Income Tax (Earnings and Pensions) Act 2003 section 517

Share options to which this Chapter applies

Section 517 identifies the share options that fall within this Chapter, namely options granted under a Schedule 3 SAYE option scheme in connection with an individual's employment or directorship.

• The Chapter applies to share options granted to an individual under a Schedule 3 Save As You Earn (SAYE) option scheme
• The option must be granted because the individual holds an office or employment as a director or employee of a company
• The individual does not have to be a director or employee of the same company whose shares are the subject of the option — they may work for a different company
• Both conditions must be met: the option must comply with the SAYE scheme rules and must be linked to the individual's employment or directorship