Paragraph 45 provides the authority for an officer of Revenue
and Customs to request information from companies with approved
SAYE share option schemes and those who are submitting schemes for
approval.
For existing schemes the notice to provide information will
normally be in the form of an annual return (form 34). Paragraph 45
is the authority to include questions on the return relating to the
liability for income tax or capital gains tax of any person who has
participated in the scheme; this will take the form of questions
concerning the grant & exercise of options.
Paragraph 45 also provides the authority to request
information about the administration of the scheme to confirm that
the scheme has not been altered and still conforms to the relevant
statutory requirements. In practice this is now dealt with by the
ongoing obligations of the scheme organiser to advise of changes to
the scheme and seek prior approval in specified circumstances (see
ESSUM36110 &
ESSUM37600). There is no longer a
requirement to provide information on the annual return in relation
to scheme alterations, option exchanges, variations of share
capital and constituent companies; however the declaration on the
annual return makes clear that options must have been granted and
exercised under the terms of the approved scheme.
Notices to file are normally issued on the first working day
after the end of the tax year and the return (form 34) should be
received by HMRC (ESSU) within 3 months of the date of issue;
penalties may be chargeable where the return is received late or is
incomplete or inaccurate. From 6th April 2007 it has been possible
for annual returns to be filed electronically.
For new schemes being submitted for review and subsequent
approval, paragraph 45 is the authority for requesting information
necessary to determine whether the scheme satisfies the relevant
requirements of Schedule 3.
The information requested must only be that which the person
to whom the notice (return) is addressed has or can reasonably
obtain.
