Frequently Asked Questions — SAYE Sharesave
What is a SAYE Sharesave scheme?
A Save As You Earn (SAYE) scheme is an HMRC-approved employee share savings plan. You save a fixed amount each month for 3 or 5 years and at the end can use those savings to buy shares at a discounted price set when you joined.
How much can I save each month?
You can save between £10 and £500 per month under HMRC rules. Your employer sets the specific amounts available within that range.
What discount can I get on the option price?
Your employer can set the option price at up to a 20% discount to the market price on the grant date. This discount is locked in for the full savings term.
Are SAYE gains tax-free?
If you buy shares using your SAYE savings and hold them (or transfer into an ISA/SIP within 90 days), any gain above the option price is free of income tax and NIC. CGT may apply on later disposal above the annual exempt amount.
What happens if I leave the company before SAYE matures?
If you leave in the first three years for non-qualifying reasons, you lose the options and get your savings back. Qualifying leavers — redundancy, retirement, ill-health — can exercise within 6 months.
What happens to my SAYE if I am made redundant?
Redundancy is a good-leaver reason. You can exercise your options within 6 months of leaving even before the maturity date.
Can I get my savings back early?
Yes — you can withdraw at any time. However withdrawing before the end of the first year typically means you receive only your contributions with no bonus.
What is the SAYE bonus rate?
A tax-free bonus is payable at maturity. The rate is set by HM Treasury and has been 0% for 5-year contracts in recent years due to low interest rates. Any bonus received is free of income tax and NIC.
What happens in a company takeover?
Option holders can usually exercise early within 6 months of a takeover. The acquirer may also offer a replacement scheme.
What if the share price is below my option price at maturity?
You are not obliged to buy the shares. You simply take your savings back as cash — one of SAYE's key investor protections.
Can I transfer SAYE shares into an ISA?
Yes — shares purchased through SAYE can be transferred into a stocks and shares ISA within 90 days of exercise without using your £20,000 ISA allowance.
Can I hold more than one SAYE contract?
Yes, subject to the overall £500/month limit across all contracts. If your employer offers a new scheme annually you can participate in multiple years concurrently.