Taxes Consolidation Act 1997 Schedule 12A paragraph 11

Eligible companies for scheme shares

Paragraph 11 of Schedule 12A specifies which companies' ordinary shares may qualify as scheme shares under an approved savings-related share option scheme.

• Scheme shares must form part of the ordinary share capital of an eligible company, not preference shares or other classes of share capital.
• Eligible companies include the grantor company itself or a company which has control of the grantor.
• Shares in a consortium member company (or a company controlling such a member) also qualify, provided the consortium owns the grantor or its controlling company.
• Where the scheme shares are in a consortium-related company, that company must beneficially own at least 15 per cent of the ordinary share capital of the company owned by the consortium.