ETASSUM34090 | Schedule 3 SAYE option schemes: Linkage to Savings (Arrangement): Terms of prospectus

The terms of a certified SAYE savings arrangement are reflected in a Prospectus. Any Prospectus for a certified SAYE savings arrangement under Section 705 ITTOIA 2005 must satisfy requirements set by the Commissioners for HMRC. In particular, requirements relating to:

1. the descriptions of individuals who may enter into contracts under an arrangement,

2. the contributions to be paid by individuals, and

3. the sums to be paid or repaid to individuals.

The main features of a Prospectus are discussed in more detail under the following headings:

• Monthly contributions (see ETASSUM34110),

• Deductions from pay (see ETASSUM34120),

• Failure to pay contributions (see ETASSUM34130),

• Temporary postponement of contributions (see ETASSUM34140), and

• Employees declaration (see ETASSUM34150).

Paragraph 21 of the prospectus prohibits the transfer of the savings contract or any of its benefits to a third party. This includes any arrangement under which an employee transfers or gives up rights or any part of the increase in the value of the shares, or any profit made from them to a third party.