SAYE (Share Save Scheme)

This Scheme involves an employee entering into a savings contract for 3, 5 or 7 years. In addition, the employee is granted an option for which the savings will provide the exercise price. The exercise price of the shares subject to the option can be set at a discount (the maximum discount is 20%). Principal features:-

• Maximum amount of monthly savings £250 (minimum £5);
• Bonuses added to the employee's savings depending upon the length of the contract.
• No income tax or national insurance on the exercise of the option.
• On the sale of the shares the employee is liable to capital gains tax on the difference between the sale proceeds and the aggregate exercise price.
• The employee can set-off his capital gains tax allowance against any taxable gain.
• Shareholder approval is normally required.