ETASSUM35450 | Schedule 3 SAYE option schemes: Requirements relating to share options: Exercise rights: Company events - Exercise of options

Paragraph 37 sets out further circumstances in which scheme rules may provide for the exercise of Schedule 3 SAYE options. These provisions are not a compulsory requirement for inclusion in Schedule 3 SAYE option schemes. Unlike other early exercise opportunities in paragraphs 32, 33 & 34(1) a company can choose whether or not to include any or all of the paragraph 37 provisions in its scheme.

Options may be exercised by reason of paragraph 37 provisions whether or not they have been held for three years. But income tax relief under Section 519 is only due (a) if options exercised in these circumstances have been held for at least three years or (b), (post FA13), if options have been held for less than three years but are exercised in the event of a cash takeover under the circumstances described at ITEPA 2003 paragraph 519(3A) to (3J) (See ETASSUM35500).