ETASSUM39030 - Schedule 3 SAYE option schemes: Supplementary and Defined terms: Group schemes
Schedule 3 SAYE option schemes can be extended to include subsidiary companies under the control of the company which established the scheme. These are known as 鈥済roup schemes鈥�. There is no statutory authority for extending a scheme to other companies (CIR v Reed International plc 鈥� see ETASSUM47270). The scheme organiser company and nominated subsidiaries are referred to as 鈥渃onstituent companies鈥� (paragraph 3(3)).
Details of the constituent companies should be submitted as part of the annual SAYE return. A company鈥檚 introduction as a constituent company in a group scheme cannot be backdated to a date before it was formally admitted.
A Schedule 3 SAYE option scheme which is established by a company which is itself a subsidiary company cannot include as constituent companies its own parent company or fellow subsidiaries.
鈥淐ontrol鈥� has the meaning given in Section 719 ITEPA and will normally include companies in which the grantor owns more than 50% of the shares. It is acceptable for schemes to define subsidiary companies by reference to Section 1159 of the Companies Act 2006.