Introduction Details of the Schedule Part 3, Material Interest Rules
25.Paragraph 32 introduces amendments to the rules on 'material interest' in Part 7 of ITEPA for SIP, SAYE and CSOP, under which employees are not allowed to participate in these schemes if, broadly, they own more than 25 per cent of the ordinary share capital of a company (or in some cases the assets of the business).
26.Paragraphs 33 - 38 remove the material interest requirement for determining whether an individual is eligible to participate in a SIP scheme and make consequential changes. The changes have effect from the date the legislation receives Royal Assent, and SIP schemes approved before these changes take effect are to be treated as if relevant provisions included the modifications made by these paragraphs.
27.Paragraphs 39 - 43 remove the material interest requirement for determining whether an individual is eligible to participate in an SAYE option scheme, and make consequential changes. These changes have effect from the date the legislation receives Royal Assent, and SAYE schemes approved before these changes take effect are to be treated as if relevant provisions included the modifications made by these paragraphs.
28.Paragraph 44 amends the CSOP legislation by adjusting from 25 to 30 per cent the figure for determining whether an individual has a material interest in the share capital or assets of the company. The change has effect from the date the legislation receives Royal Assent, and CSOP schemes approved before these changes take effect are to be treated as if relevant provisions included the modifications made by this paragraph.