What is a SAYE (Sharesave) scheme?

Save As You Earn (SAYE) is an HMRC-approved employee share scheme. Employees save a fixed monthly amount (up to £500) over 3 or 5 years and receive a tax-free bonus at maturity. They can then use their savings to buy shares at the option price set at grant — usually discounted up to 20% below market value.

How much can I save in a SAYE scheme?

Between £5 and £500 per month. The monthly savings amount is fixed at enrolment. You cannot change it during the contract period, though you may stop contributions temporarily in limited circumstances.

What is the SAYE bonus?

At maturity, HMRC sets a bonus rate that is added to your savings. The bonus is tax-free and increases the total pot available to exercise your options or take as cash if you let the options lapse.

What happens if the share price falls below the option price?

You simply let the options lapse. You receive your savings back plus the tax-free bonus. You do not have to buy shares that have fallen below the option price.

Is the SAYE profit subject to CGT?

The gain on exercise (market value minus option price) is not subject to Income Tax or NI. However, if you hold the shares after exercise and the value increases further, any subsequent gain is subject to CGT on disposal.

Can I sell shares immediately after exercising SAYE options?

Yes. Many participants sell immediately at exercise to lock in the tax-free profit. Holding after exercise means the base cost for CGT is the market value on the exercise date, not the option price.

What is the 3-year versus 5-year contract difference?

Both are tax-free on exercise. The 5-year contract typically offers a higher HMRC bonus rate. The longer contract means more total savings (and potentially more shares). The option price is the same — set at grant for both contract lengths.

What is the option price discount?

Employers can set the option price up to 20% below the market value of shares at grant date. This discount is the guaranteed 'floor' profit built into SAYE, as long as the share price at maturity is at or above the option price.

What happens if I leave my employer during the SAYE contract?

If you leave within 3 years for most reasons, you can take your savings but cannot exercise the options. If you leave after 3 years due to redundancy, injury, disability, retirement, or company takeover, early exercise may be permitted.

Can I transfer SAYE shares to an ISA?

Yes. SAYE shares can be transferred into a Stocks and Shares ISA within 90 days of exercise, shielding future gains from CGT without using any of the annual subscription limit.

How is the SAYE bonus rate set?

HMRC sets the SAYE bonus rate periodically, based on prevailing interest rates. Bonus rates can be zero or very low in low-rate environments. The 2026 illustrative rates used in this calculator are approximate — your employer's scheme documents will have the current confirmed rate.

What are the employer's obligations under SAYE?

Employers must offer SAYE on equal terms to all qualifying employees, file annual ERS returns with HMRC, and arrange for an HMRC-approved savings carrier (usually a bank or building society) to hold employee savings.

SAYE Sharesave Calculator 2025/26 | Save As You Earn Scheme

Q: Is the profit from SAYE tax-free?

Yes. The gain between the option price and the market price at exercise is completely free of Income Tax and National Insurance. This is one of the most tax-efficient employee benefits available in the UK.

SAYE Sharesave Calculator 2025/26

Monthly savings (£, max £500)

Contract length

3 years 5 years

Option price per share (£)

Expected share price at maturity (£)

Your income tax rate (for CGT reference)

Total saved

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Tax-free bonus at maturity

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Total pot (savings + bonus)

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Shares acquired (whole)

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Tax-free profit on exercise

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Total value at exercise

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If lapsed: savings + bonus

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CGT if held & sold later (est.)

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CGT note: if you sell shares immediately at exercise, no CGT applies (sale = acquisition price). CGT shown is if price rises a further 20% after exercise. Annual exempt amount (£3,000) not applied.

How SAYE (Save As You Earn) Works

SAYE — also called Sharesave — is one of the UK's most popular employee benefits. Employees save a fixed monthly amount (£5–£500) for 3 or 5 years. At maturity, they receive a tax-free bonus and can use the pot to buy shares at the option price fixed at the scheme start date — which is typically set up to 20% below the market price at grant.

The key benefit is that the gain between the option price and the market price at exercise is completely free of Income Tax and National Insurance. There is no limit on how large this gain can be.

SAYE at a Glance — 2025/26

Feature	3-Year Contract	5-Year Contract
Total months	36	60
Illustrative bonus rate (2026)	1.1 months savings	3.2 months savings
Income Tax on exercise gain	None	None
NI on exercise gain	None	None
CGT on immediate sale at exercise	None (base cost = market price)	None (base cost = market price)
If price falls below option price	Lapse — get savings + bonus back	Lapse — get savings + bonus back

Transferring SAYE Shares to an ISA

After exercising your SAYE options, you can transfer the shares to a Stocks and Shares ISA within 90 days. This protects any future gains from CGT without using your ISA subscription allowance — one of the most powerful SAYE planning strategies available.

Frequently Asked Questions — SAYE Sharesave

Is SAYE the most tax-efficient employee share scheme?

What is the current SAYE bonus rate for 2025/26?

Can I run more than one SAYE contract at a time?

What is the CGT position when I sell SAYE shares?

Can SAYE shares be transferred to a Stocks and Shares ISA?

What happens if I go on maternity or paternity leave?

What if my company is taken over?

How do I find the option price for my scheme?

Is the SAYE bonus guaranteed?

How does SAYE interact with my salary for mortgage purposes?

What if I miss a monthly payment?

Do I need to report SAYE exercises on Self Assessment?

Can I give SAYE shares to my spouse or civil partner?