save as you earn share options

save as you earn (SAYE) share options

a UK SHARE OPTIONS scheme introduced in 1980. Where schemes are in operation employees can subscribe to options to buy shares in their employing company in three, five, or seven years time but at up to a 20% discount on the current market price. In the meantime they make regular savings of between £5 and £250 a month using a ‘save as you earn’ savings scheme. When the savings contract expires employees may purchase their options or may choose to take the money instead. This scheme attracts favourable tax concessions: employees receive a tax free bonus at the expiry of the savings schemes, whilst the award of shares on favourable terms is not subject to income tax. See EMPLOYEE SHARE OWNERSHIP PLAN.