Save-As-You-Earn schemes
SAYE schemes must be Inland Revenue-approved. They provide employees with the
option to buy shares in the company in three, five or seven years’ time at today’s
price, or a discount of up to 20 per cent of that price. Purchases are made from a
savings account to which the employee pays an agreed sum each month. The
monthly savings must be between £5 and £250. Income tax is not chargeable when the
option is granted.
Contingent pay ❚ 727