As part of today’s Autumn Statment, it has been announced that there will be increases in the limits applying to HMRC-approved Share Incentive Plans (“SIPs”) and Savings-related Share Option Schemes (“SAYE”).
Under a SIP, and from April 2014, employees will be able to invest up to £1,800 per year (currently £1,500) from pre-tax salary in buying shares in their employer. Employers will also be able to give up to £3,600 of free shares per year (currently £3,000) to each of their employees.
Under an SAYE, and again from April 2014, employees will be able to save up to £500 per month (currently £250 per month) from post-tax salary over a three or five year savings period which can then be used to buy shares in their employer at a discounted price.
Please do get in touch if you would like to find out more about the implications of these proposed changes or if you would like to explore whether a SIP or an SAYE may be of benefit to your company.