This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Inheritance Tax Manual

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
  • take the savings plus interest.

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 the market value of the shares is less than the option price, the open market value is nil.

If the value offered is less than the difference, and the amount of tax involved is substantial, seek advice from Shares and Assets Valuation.

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