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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): Link between level of savings & size of related share option

Paragraph 25 provides the link between the level of monthly savings contributions and the size of the related share option.

The scheme must provide that the monthly contributions are to be such that the eventual repayment under the savings contract will secure, as nearly as possible, repayment of an amount equal to the total option price.

As the option exercise price per share is fixed at the date of grant in accordance with paragraph 28, the requirement of paragraph 25 means that the level of monthly contributions will determine the number of shares which are subject to the option.

In accordance with paragraph 26 the eventual savings repayment can be taken as including or not including the 3 or 5 year bonuses on the savings contracts, but whether it will or not must be specified when the option is granted (see ETASSUM34180).