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HMRC internal manual

Employee Tax Advantaged Share Scheme User Manual

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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) https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/387467/saye-prospectus.pdf

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

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