It is a sharesave scheme where i put in so much every month for three years and can then take either the (money + interest) i have saved or take the option to get the equivalent shares that i would have brought at the initial price of 27p a share.
Save As You Earn (SAYE) Scheme
The SAYE scheme is an option scheme with a parallel savings plan. It is an all-employee scheme (again, directors and 25% shareholders are ineligible to join).
Employees save regular sums out of their salary (maximum £250 a month) over a period of 3, 5 or 7 years, into a special savings account. All interest earned on this account is tax free. At the end of the savings period, the accumulated savings can be used to acquire shares under an option that was granted at the start of the period. If the share value has fallen, or for any other reason the employee does not choose to exercise the option, he can instead receive cash from the savings plan.
If the employee exercises the option, there is no PAYE or NIC due. The shares are now his property, and he can if he wishes sell them immediately – his only tax will be any capital gains tax if he sells the shares. The employee can, however, transfer the shares (within 90 days of exercising the option) into an ISA or a stakeholder pension tax free.
When the option is granted to the employee, the option price must be at least 80% of the value of the shares on the date of grant.