Sharesave (Save As You Earn)
Sharesave (Save as You Earn) plans are tax efficient savings plans combined with the option to purchase shares at the end of a specified period. They enable employees to share in the success of their company.
A Sharesave plan affords employees the opportunity to purchase shares at the maturity date (usually after 3, 5 or 7 years) at a discount up to 20% of the market price of the shares at the time the options were granted), thus making a potential tax-free gain.
By saving between £5 and £250 per month in a Sharesave plan, employees are able to enjoy a guaranteed tax-free bonus at maturity in addition to the potential gains made if they are able to sell their shares following an increase in price. If a gain would not be made upon maturity, employees can simply let the option lapse (i.e. choose not to purchase the shares), and have their capital plus the tax-free bonus returned to them. Therefore the risk of an individual making a loss on their capital is eliminated. Capital gains tax may be payable for gains above the annual allowance.
Sharesave schemes are a fantastic risk-free way to improve employee motivation and involvement in company performance.
At HBOS EES we are able to draw on our many years of expertise in administering Sharesave plans in order to offer your company a tailored solution - Contact us. We are able to administer and act as savings carrier for Sharesave plans all the way from implementation to maturity. Our services cover HMRC tax-approved plans as well as global sharesave plans offering savings arrangements to employees employed across the World.
