SAYE—eligibility requirements and self-certification process

A save as you earn (SAYE) scheme is a type of statutory tax advantaged employee share scheme under which participants are granted a tax-efficient share option and are required to enter into a linked savings arrangement with a bank or building society. Other names for SAYE schemes are sharesave schemes or savings-related share option schemes.

As SAYE schemes are designed to be offered to all employees (rather than on a selective basis), they tend to be operated by larger listed companies.

If the statutory provisions are met and the SAYE scheme is correctly notified to HMRC, favourable tax treatment can result.

The shares may only be bought using amounts which the employee has saved under the savings arrangement (by deductions of up to £500 per month from the employee’s net salary), together with any tax-free bonus payable under the savings arrangement. Alternatively, the option holder can choose not to exercise the option and simply keep the proceeds of the savings arrangement when it matures.

The SAYE regime sets out numerous requirements that must be met, including in relation to:

1. •

   the employees that are being