SAYE (Save as you Earn) Sharesave:

• SAYE is an all-employee share scheme share option scheme.
• The employee can save from £5 to £250 per month out of taxed pay on a 3 or 5 years saving contract.  There is also a 7-year “contract” which is a 5-year contract where the employee leaves the contributions in for a further two years.
• Employees are offered the option to buy shares in the company at a future date.  A discount of up to 20% of current price may be offered.
• Bonuses are paid equivalent to fixed rate interest and are set by the Treasury.  Bonus rates cannot fall below 0%.
• At the end of the agreed period contributors to an SAYE scheme can either use the money saved, with the bonus and interest to buy shares in the company or can have their contributions returned.
• The bonus and any gains made on the shares are exempt from income tax and NICs. CGT may be payable if the amount exceeds the annual personal allowance of £10,100. The shares can be transferred into a personal ISA.