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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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Share options: SAYE share option schemes

The employee undertakes to pay a specified monthly sum (since 6 April 2014 a maximum £500 per month) with a nominated building society for, normally, 5 years. After that time the employee has the option of using the money to either

  • purchase shares in the company at a price fixed when the undertaking is entered into, or
  • to take the savings plus interest.
     

If a comparatively small number of shares are involved you may accept the value offered when the option is included at a value representing simply the difference between the option price and the market value of the shares at the date of death.

If a substantial amount of tax may be involved you should refer the case to Shares and Assets Valuation.

If you have any problems in dealing with this type of scheme you should refer the case to Technical.