Save As You Earn (SAYE) scheme changes
The SAYE scheme is a savings related scheme where employees of participating companies with share option schemes can save to buy shares at a discount.
SAYEs are approved by HMRC and allow employees to make contributions and buy shares at a future date using the current share price (discounted by up to 20%).
The contributions are made from an employee’s taxed income and they are locked into a 3 or 5 year contract. At maturity an employee can choose to exercise the option to buy shares or take the proceeds and a bonus in cash. The option for a 7 year savings period was withdrawn from 23 July 2013.
The SAYE savings limits will be increased from 6 April 2014 when the current maximum contribution per month will increase from £250 to £500.