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 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.
