Taxes Consolidation Act 1997 Schedule 12A paragraph 9

Who may participate

Paragraph 9 of Schedule 12A sets out the eligibility requirements for participation in an approved savings-related share option scheme, requiring that the scheme be open to all employees and full-time directors on similar terms.

• Every employee and full-time director of the grantor company (or a participating company in a group scheme) must be eligible to participate in the scheme on similar terms, subject to the material interest test in paragraph 8.
• The person must have been an employee or full-time director throughout a qualifying period of no more than three years and must be chargeable to tax under Schedule E in respect of that office or employment.
• The fact that rights under the scheme vary according to participants' levels of remuneration, length of service, or similar factors does not prevent the scheme from meeting the "similar terms" requirement.
• Except where paragraph 20 applies or a provision referred to in paragraph 22(1)(e) or (f) is in place, a person may only participate if he or she is a director or employee of the grantor company or, in a group scheme, of a participating company at the relevant time.