Paragraph 8

United Kingdom

(1)

The plan must provide that every employee who—

(a)

meets the requirements mentioned in Part III (eligibility of individuals) in relation to an award of shares under the plan, and

(b)

is chargeable to tax under Case I of Schedule E in respect of the employment by reference to which he satisfies the condition in paragraph 14 (the employment requirement),

is eligible to participate in the award, and invited to do so.

(2)

The plan must not contain any feature which has or would have the effect of discouraging any description of employees within sub-paragraph (1) from participating in an award of shares under the plan.

This does not apply to any provision required or authorised by this Schedule.

(3)

The plan may provide that an employee who—

(a)

meets the requirements mentioned in Part III (eligibility of individuals) in relation to an award of shares under the plan, but

(b)

is not chargeable to tax as mentioned in sub-paragraph (1)(b),

is eligible to participate in the award, and may be invited to do so.

(4)

For the purposes of this Schedule an individual is a “qualifying employee”, in relation to an award of shares, if—

(a)

he is eligible to participate in the award, and

(b)

either—

(i)

he must be invited to participate in the award (see sub-paragraph (1)), or

(ii)

under the plan he may be invited to participate in the award (see sub-paragraph (3)) and has been so invited.

Notes on Schedule 8

Textual amendments

F1: Sch. 8 repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), Sch. 8 Pt. 1 (with Sch. 7)