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HMRC internal manual

Employee Tax Advantaged Share Scheme User Manual

HM Revenue & Customs
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Schedule 3 SAYE option schemes: Linkage to savings (arrangement): Bonuses and interest

Bonus rates are expressed as the number of monthly contributions comprised in 3 or 5 year bonuses.

If the savings contract is completed and the 36 or 60 monthly contributions made, the employee is entitled to a bonus equivalent to the specified number of monthly contributions referred to in the relevant prospectus.

If the contributions are repaid after 3 years or 5 years, as applicable, a bonus is payable.

If application for repayment is made before the 3 or 5 year point, the employee is not entitled to any bonus, but is entitled to interest. The relevant percentage rate of interest is specified in the relevant prospectus (PDF 102KB)

Bonuses and interest received are not taxable (Section 702 ITTOIA 2005).

The 7 year savings feature was abolished with effect from 23rd July 2013.