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