Glossary · UK
What is SAYE (Save As You Earn)?
HMRC-approved tax-advantaged share scheme letting employees buy shares at a discounted price after 3 or 5 years of saving.
Full Definition
SAYE (also called Sharesave) is a government-approved employee share scheme. You commit to save £5–£500/month from net pay for 3 or 5 years. At the end you choose between (a) using the savings to buy company shares at the option price fixed at the start (up to 20% discount on the market price), or (b) taking the cash back tax-free. No Income Tax or NI on the discount. Capital Gains Tax may apply on sale of shares above the £3,000 Annual Exempt Amount (2025/26), unless transferred straight to an ISA or pension within 90 days. Available only at participating employers.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.