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HMRC internal manual

Inheritance Tax Manual

Stocks and shares: Share Option Schemes: SAYE Scheme

In this type of scheme, the employee undertakes to pay a specified monthly sum (maximum £100 per month) with a nominated building society for, normally, 5 years. After that time, the employee has the option of using the money accrued

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

You may accept that the difference between the date of death value and the cost of the option is the market value of the option at the date of death.

  • If the difference is a negative amount, limit the open market value to nil.
  • If the value offered is less than the difference, and the amount of tax involved merits pursuit, refer to Shares and Assets Valuation to consider the value.