{
  "url": "https://openlegislation.uk/tax-avoidance-schemes-prescribed-descriptions-of-arrangements-regulations-2004/schedule/paragraph-3",
  "json_url": "https://openlegislation.uk/tax-avoidance-schemes-prescribed-descriptions-of-arrangements-regulations-2004/schedule/paragraph-3.json",
  "legislation": "uksi/2004/1863",
  "legislation_title": "The Tax Avoidance Schemes (Prescribed Descriptions of Arrangements) Regulations 2004",
  "legislation_url": "https://openlegislation.uk/tax-avoidance-schemes-prescribed-descriptions-of-arrangements-regulations-2004",
  "path": "schedule/paragraph/3",
  "kind": "paragraph",
  "number": "3",
  "heading": "Arrangements involving securities or associated rights",
  "text": "(1) This paragraph applies to any arrangements under which—\n(a) securities,\n(b) interests in securities,\n(c) securities options,\n(d) anything the right to which is derived from securities, or\n(e) anything the value or amount of which is calculated by reference to securities, interests in securities or securities options, or something the right to which is derived from securities,\nare obtained by an employee or any other person, by reason of the employee’s employment, but this is subject to sub-paragraphs (3), (5) and (6).\nIn this sub-paragraph—\n“securities” has the meaning which it would have by virtue of section 420 of ITEPA 2003 were subsection (5) disregarded; and\n“securities option” has the meaning given by subsection (8) of that section.\n(2) For the purposes of this paragraph, anything obtained under arrangements by an employee or a person associated with him—\n(a) which confer a right or opportunity to obtain anything mentioned in sub-paragraph (1), and\n(b) the costs of which are borne wholly or partly and whether directly or indirectly by the employer or a person connected with the employer,\nis to be treated as obtained by reason of the employee’s employment.\n(3) This paragraph does not apply if the arrangements in their entirety constitute—\n(a) an approved share incentive plan under Schedule 2 to ITEPA 2003, including any trust established for the purposes of the plan under paragraph 71(3) of that Schedule; or\n(b) an approved SAYE option scheme under Schedule 3 to that Act or an approved CSOP scheme under Schedule 4 to that Act, together with any trust established solely for the purposes of that scheme or those schemes.\n(4) For the purposes of sub-paragraph (3), a plan or scheme (as the case may be) for which approval has been sought from the Board is to be treated as approved during the period while the application for approval is before them.\n(5) This paragraph does not apply to arrangements to the extent that they would involve the issue of shares to persons to whom it is reasonably expected that certificates in relation to those shares would be issued under section 306(2) of ICTA 1988 (including that subsection as it is applied by paragraph 6 of Schedule 5B to the Taxation of Chargeable Gains Act 1992).\n(6) This paragraph does not apply if the arrangements in their entirety comprise—\n(a) the grant of one or more qualifying options which meet the requirements of Schedule 5 to ITEPA 2003 and fall to be notified to the Board in accordance with Part 7 of that Schedule; or\n(b) such a grant as is mentioned in paragraph (a) together only with such other steps as are reasonably necessary in all the circumstances for the purpose of facilitating it.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "Section 420 was substituted by paragraph 2 of Schedule 22 to the Finance Act 2003 (c. 14)."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "Schedule 2 was amended by section 142(3) of, and Part 1 of Schedule 21, paragraph 43 of Schedule 22 and Part 3(3) of Schedule 43 to, the Finance Act 2003."
    },
    {
      "type": "footnote",
      "label": "f3",
      "text": "Schedule 3 was amended by Part 2 of Schedule 21, paragraph 44 of Schedule 22 and Part 3(3) of Schedule 43 to the Finance Act 2003."
    },
    {
      "type": "footnote",
      "label": "f4",
      "text": "Schedule 4 was amended by paragraphs 15 to 17 of Schedule 21 to the Finance Act 2003."
    },
    {
      "type": "footnote",
      "label": "f5",
      "text": "Chapter 3 of Part 7 of ICTA 1988 was substituted in respect of shares issued on or after 1st January 1994 by section 137 of, and Schedule 15 to, the Finance Act 1994 (c. 9). Section 306(2) was amended by paragraph 22 of Schedule 20 to the Finance Act 1996 (c. 8) and paragraph 19 of Schedule 13 to the Finance Act 1998 (c. 36)."
    },
    {
      "type": "footnote",
      "label": "f6",
      "text": "1992 c. 12. Schedule 5B was inserted by paragraph 4 of Schedule 13 to the Finance Act 1995. Paragraph 6 was substituted by paragraph 33 of Schedule 13 to the Finance Act 1998 and was amended by paragraph 4 of Schedule 8 to the Finance Act 1999 (c. 16)."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2004/1863/schedule/paragraph/3",
    "retrieved_at": "2026-10-29T05:22:23.242735+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}