SAYEs were introduced in 1980 as the first tax favoured scheme
to encourage all employees to own shares in their employing company
or, if a group of companies, in the parent company. Awards under a
SAYE are commonly used as a means of rewarding, incentivising or
retaining employees or for a combination of these objectives.
What is a SAYE?
SAYE is an HM Revenue & Customs (HMRC) approved share option
plan designed to encourage employees to enter a regular savings
plan to enable them to acquire shares in their employing company
and to participate in the growth of the company. The saving scheme
for each investor cannot exceed £250 per month under either a
three year or a five year plan. Provided the saving plan period is
completed the investor will be entitled to a standard bonus. Those
opting for the five year plan can chose to leave their
contributions in the plan for a further two years and receive an
additional bonus.
