Today’s announced increases in SIP and SAYE limits

Andrew Quayle, Nicholas Stretch, Graham Muir and Catherine Merry

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.

 

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