How does SAYE Sharesave work?

You save a fixed monthly amount (£5–£500) for 3 or 5 years. At the end you use the savings to buy shares at the option price (up to 20% below market value at invitation). You can also take the cash plus any bonus instead.

Is there income tax on SAYE options?

No income tax or NIC at exercise. The discount benefit is exempt. Only CGT applies when you sell the shares: 18% (basic rate) or 24% (higher/additional rate), with the £3,000 annual exempt amount available.

What happens if I leave my job?

Good leaver reasons (redundancy, ill health, retirement, company sale) give you 6 months to exercise options at the option price. Bad leavers forfeit their options but get their savings back.

What is the SAYE bonus?

SAYE accounts may pay a tax-free bonus at maturity, set by HMRC (currently 0% on many accounts). The bonus supplements your savings and can be used to buy extra shares.

How is the option price set?

The option price is set at invitation and can be up to 20% below the market price. This discount is tax-free — no income tax or NIC — unlike unapproved discounted options.

What CGT rate applies to SAYE shares?

From April 2024: 18% for basic rate taxpayers, 24% for higher and additional rate taxpayers. The £3,000 annual exempt amount applies before the tax rate.

What happens to my savings if I don't exercise?

You get all your savings back (plus any bonus). You never lose your monthly contributions in SAYE — the only risk is that the share price rises so high you wish you'd saved more.

Can my employer contribute to SAYE?

No. Only employees save into a SAYE account. The employer's contribution is the discounted option price offered — worth up to 20% of the share price at invitation.

Is SAYE available at all companies?

SAYE is only available at companies that choose to operate a HMRC-approved scheme. Listed companies often run them; private companies can too. Check with your HR department.

Do I need to report SAYE on my tax return?

Not the exercise. You report any CGT from selling the shares on your Self Assessment return. Use the HMRC SA108 Capital Gains Summary supplementary pages.

SAYE Sharesave Calculator

Q: Can I transfer SAYE shares to an ISA?

Yes — within 90 days of exercise, you can transfer SAYE shares to a Stocks & Shares ISA (up to the £20,000 annual allowance) to shelter future growth and dividends from CGT and income tax.

Q: What is the maximum SAYE saving?

Up to £500 per month (£18,000 over 3 years or £30,000 over 5 years). There is no annual limit on how many SAYE schemes you can participate in, subject to the monthly cap.

Save As You Earn — calculate your option gain and CGT

SAYE Calculator

Monthly Savings (£)

Scheme Duration

Option Price per Share (£)

Market Price at Maturity (£)

CGT Rate

Other CGT Gains This Year (£)

How SAYE Sharesave Works

SAYE (Save As You Earn) is an HMRC-approved employee share scheme. You save monthly for 3 or 5 years into a SAYE account at a bank or building society. At maturity, you can buy shares at the option price (set at up to 20% below market price at invitation) using your accumulated savings. If the share price has fallen below your option price, simply take the cash instead.

Frequently Asked Questions

What is the maximum SAYE saving?

Can I transfer SAYE shares to an ISA?