SAYE Sharesave Calculator
Calculate the potential profit from your Save As You Earn (SAYE) Sharesave scheme. Model your option gain, tax-free bonus and net return from your employer's scheme.
Last updated: March 2026 — 2025/26 CGT rates and AEA applied
SAYE Sharesave Calculator 2025/26
Calculate your maturity fund, option gain, CGT position and net profit from your employer's SAYE scheme
SAYE Sharesave Scheme: Complete Tax Guide 2026
What Is a SAYE Sharesave Scheme?
Save As You Earn (SAYE), also known as a sharesave scheme, is an HMRC-approved employee share scheme that allows employees to save a fixed amount each month from their post-tax salary, then use those savings to buy shares in their employer at a guaranteed discounted price. SAYE schemes are non-discretionary — if offered, they must be available to all employees who have worked for the company for at least five years (or a shorter qualifying period set by the employer).
The scheme was introduced in 1980 and is governed by Schedule 3 of the Income Tax (Earnings and Pensions) Act 2003. Around 1.5 million employees participated in SAYE schemes in 2024/25, with approximately £1.7 billion saved collectively. SAYE schemes are predominantly offered by FTSE 350 companies and large private companies.
How a SAYE Scheme Works — Step by Step
Enrolment & Option Grant
You choose a monthly savings amount (£5–£500). Your employer sets an option price — typically up to 20% below the market value on the invitation date. This is fixed for the life of the scheme.
Monthly Savings
You save via payroll deduction for 3 or 5 years. Savings are held with NS&I in a dedicated savings account. You can stop saving at any time and withdraw your savings in cash.
Maturity & Decision
At the end of the term, you receive your savings plus any tax-free bonus. If the share price is above your option price, you use your fund to buy shares at the discounted price. If not, you take your cash back.
Tax-Free Exercise
No income tax or NICs on the option gain at exercise. Shares can be sold immediately for instant profit, held for potential further growth, or transferred to a Stocks & Shares ISA within 90 days.
Tax Treatment of SAYE Schemes
The tax treatment of SAYE is one of the most advantageous in the UK employee benefits landscape:
| Stage | Tax Treatment |
|---|---|
| Monthly savings deductions | Made from net (post-tax) salary — no special tax treatment on contributions |
| Savings bonus at maturity | Entirely tax-free (not subject to income tax or NICs) |
| Option gain at exercise | No income tax, no employee or employer NICs — fully exempt |
| Dividend income on shares held | Taxed as dividend income (£500 allowance, then 8.75%/33.75%/39.35%) |
| Capital gain on sale | CGT applies to growth above option price. £3,000 AEA available. 18% (basic) or 24% (higher) rate. |
| Transfer to ISA within 90 days | Special treatment: valued at option price (not market value) for CGT — locks in base cost at exercise price inside ISA. |
CGT on SAYE Shares — Detailed Analysis
When you sell SAYE shares, Capital Gains Tax may apply. The base cost for CGT purposes is the option price (what you paid for the shares), not the market value at exercise. The gain is market value at sale minus option price per share, multiplied by the number of shares sold. The 2025/26 annual CGT exempt amount is £3,000 (unchanged from 2024/25).
For basic rate taxpayers, CGT on shares is 18%. For higher and additional rate taxpayers, it is 24% (from October 2024 Autumn Budget — previously 20%). If your total gains across the tax year (from SAYE and all other assets) exceed the £3,000 AEA, the excess is subject to CGT at your applicable rate.
Important: SAYE gains do not qualify for Business Asset Disposal Relief (BADR, formerly Entrepreneurs' Relief) unless the employee also holds qualifying conditions for BADR separately. The 10% BADR rate does not automatically apply to SAYE scheme gains.
ISA Transfer: A Critical Tax Planning Opportunity
One of the most powerful tax planning strategies for SAYE participants is the 90-day ISA transfer window. When you exercise your options, you have 90 days to transfer the shares directly into a Stocks and Shares ISA (subject to the annual ISA allowance of £20,000 in 2025/26). The key benefit is that shares transferred within this window are treated as having been acquired at the option price for CGT purposes, not at the (higher) market value on the day of transfer.
Example: You exercise options and acquire shares at your option price of £8 when the market value is £15. You transfer them to your ISA within 90 days. The shares enter the ISA at the £8 base. Any future gains (above £8) are entirely sheltered from CGT and dividend tax within the ISA. Without the ISA transfer, you would have paid CGT on £7 per share (£15 - £8) on any subsequent sale outside the ISA.
Early Exercise Circumstances
SAYE options must normally be exercised within a 6-month window after the maturity date. Early exercise is allowed in the following qualifying circumstances:
- Death: Options can be exercised by the personal representative within 12 months of death
- Redundancy or dismissal (not for cause): Exercise within 6 months
- Retirement at or after normal retirement age (typically 60–65): Exercise within 6 months
- Injury, disability, or ill-health: Exercise within 6 months
- Company takeover: Exercise within 6 months if the acquiring company does not offer equivalent replacement options
- Scheme company sold, ceases to be part of same group, or winding up: Exercise within 6 months
In all qualifying early exercise cases, the income tax and NIC exemption on the option gain is preserved. Early exercise due to resignation or dismissal for cause does not retain the tax advantage, and the gain becomes subject to income tax as employment income.
Comparing SAYE with Other Approved Schemes
| Feature | SAYE | EMI | SIP | CSOP |
|---|---|---|---|---|
| Open to all employees? | Yes (must be) | No (discretionary) | Yes (must be) | No (discretionary) |
| Company size limit | None | Gross assets <£30m, <250 employees | None | None |
| Max individual award | £500/month savings | £250,000 in options | £3,600 free shares/year | £60,000 in options (from April 2023) |
| Income tax at exercise | None (approved) | None if at/above MV at grant | None if held 5+ years | None (approved) |
| Downside protection | Yes — get savings back if price falls | No — options worthless if price falls | N/A (free shares) | No |
| CGT rate available | 18%/24% | 10% (BADR) | 18%/24% | 18%/24% |
Employer Considerations
Employers offering SAYE schemes must register the scheme with HMRC and ensure it meets the conditions in Schedule 3 ITEPA 2003. Key employer obligations: the scheme must be open on similar terms to all qualifying employees; the option price must not be less than 80% of the market value on the day the invitation is made (i.e. maximum 20% discount); the savings contract must be with an approved savings institution (currently NS&I only); and HMRC must receive an annual return of the scheme by 6 July following the tax year. Employer NICs on SAYE exercise gains are nil — a significant advantage compared to unapproved options where employer NICs at 15% apply to the exercise gain.
Sources & Methodology
This calculator uses 2025/26 CGT rates (18% basic, 24% higher — Autumn Budget October 2024) and the £3,000 annual exempt amount. Bonus rates are illustrative — check your SAYE certificate for your scheme's specific rate.
Official References
- HMRC — Save As You Earn (SAYE) scheme
- HMRC Helpsheet HS305 — Employee share and security schemes and Capital Gains Tax
- HMRC — Capital Gains Tax rates
- ITEPA 2003, Schedule 3 — SAYE option schemes
Disclaimer: Projections are illustrative only. Share prices may be lower than the option price at maturity — in which case you should not exercise and will receive your savings back in cash. Tax calculations assume no other capital gains in the year beyond the amount stated. Always verify scheme terms in your employer's SAYE invitation and consult a financial adviser for personalised guidance.