Commentary on Sections Overview Part 3: Eligibility of individuals to participate in scheme Paragraph 11: The “no material interest” requirement
3274.This paragraph derives from paragraph 8 of Schedule 9 to ICTA and from section 187(3) of ICTA and there are some drafting changes.
3275.It is the introductory provision which precludes admission into the scheme of an individual with a “material” interest in a close company whose shares are subject to the option or its parent company (or certain members of a consortium).
3276.The exact length of the preceding 12-month period has been clarified. It is expressed so as to include the “trigger date”, that is the date when the test is made. By so including it explicitly, the period is shorter by one day and so in favour of the taxpayer.
3277.The interests of the option holder are aggregated with those of any associates. “Associate” is defined in paragraphs  14 to 16 of this Schedule.
3278.The definition of close companies is subject to sections 414 and 415 of ICTA and there is now a short explanatory summary of those sections.