Key facts:
Also known as Share Save, or Savings-Related Share Option Schemes. Under a SAYE scheme, employees agree to save a certain amount each month (up to £250) for a specified period and then use the savings to buy shares in the company. The price per share must be determined at the outset but may be set at a discount of up to 20 per cent below the current market value of the shares in the company. If employees do not wish to purchase shares, they can select to take the savings instead together with a tax-free cash bonus.
A SAYE scheme needs HMRC approval and such approval will not be granted unless numerous requirements are met.
Who can benefit?
A SAYE scheme must be offered to all employees and therefore cannot be limited to key employees. However, the company can specify a period of up to 5 years employment for employees before they can take part.
Emma Cameron
Matthew Arnold & Baldwin LLP is a limited liability partnership registered in England & Wales (registered Number: OC343595) and is authorised and regulated by the Solicitors Regulation Authority. SRA Number: 508037. A list of members (and any non-members who are designated as partners) of Matthew Arnold & Baldwin LLP is open to inspection at the LLP’s registered office: 21 Station Road, Watford, WD17 1HT, United Kingdom. We use the word “partner” to refer to a member of the LLP or an employee or consultant with equivalent standing and qualifications.
Legal Notices | Privacy policy | Terms of use | Copyright notice | Equality and diversity policy | CSR
