SAYE plans | Change in bonus rates
Published on 6th Sep 2024
New bonus rates for tax-advantaged all-employee save as you earn plans
HMRC has recently announced the bonus rates applicable to tax-advantaged save as you earn (SAYE) option plans from 16 August 2024.
In accordance with the new SAYE bonus rates automatic mechanism (introduced in summer 2023), following the reduction in the Bank of England base rate on 1 August 2024, the changes in SAYE bonus and early leaver rates have been effective from 16 August 2024.
New bonus rate
For a five-year savings contract, the bonus rate is now three times monthly savings. No change has been made to the bonus rate for three-year savings contracts (which are 1.1 times monthly savings).
Cross-industry support
On tax-advantaged all-employee plans more widely, the Treasury has recently been gathering evidence to enable it to consider improvements to the SAYE Plan and the Share Incentive Plan.
There is cross-industry support for improvements to these much-valued plans, and it is to be hoped that – notwithstanding the change in government since the consultation was launched – an update will be provided at or around the Autumn Budget 2024.
Please get in touch with your usual Osborne Clarke contact or one of the experts below if you have any queries or would like to discuss further.
