Sharesave or Save As You Earn
Sharesave Schemes (SAYE) plans are the most popular plan amongst listed companies and all eligible employees must be invited to participate.
SAYE schemes involve participants saving a fixed amount from their pre-tax earnings, for a fixed period. At the outset the Company will grant an option over the maximum number of shares that can be acquired with the total savings at the end of the period. A tax free bonus is also payable on the savings.
The option can be granted with an exercise price at a discount of up to 20% from market value. If the option is exercised after the third anniversary of grant there should be no income tax payable. However, capital gains tax will be payable on the difference between the sale price and acquisition price.
All Partners and Associates in Sharesave or Save As You Earn