328. Save As You Earn share option schemes.

Save As You Earn ('SAYE') option schemes combine a share option scheme with a savings scheme used to finance the acquisition of shares under the option¹. The main conditions for tax-advantaged treatment are:

1.  

   (1)     the employee's savings contribution must not exceed £500 a month²;

2.  

   (2)     all employees (full-time and part-time) must be permitted to participate³;

3.  

   (3)     the price paid for the shares must not exceed the proceeds of the linked savings contract⁴;

4.  

   (4)     the shares must be ordinary shares, quoted, fully paid up and not redeemable⁵;

5.  

   (5)     the price at which the shares may be acquired must not be