Income Tax (Earnings and Pensions) Act 2003 Schedule 3 paragraph 25

Requirements as to contributions to savings arrangements

Schedule 3 paragraph 25 sets out the rules governing how much employees must contribute to the savings arrangements linked to an SAYE (Save As You Earn) share option scheme, including the definition of the option price and the permitted contribution limits.

• Employee contributions under the approved savings arrangement must be set at a level that will, as nearly as possible, produce a repayment equal to the option price for acquiring shares
• The option price is the total amount payable to acquire the maximum number of shares available when share options granted under the scheme are exercised
• Total monthly contributions across all certified SAYE savings arrangements linked to Schedule 3 SAYE option schemes must not exceed £500, and the scheme cannot set a minimum contribution higher than £10 per month
• The Treasury has the power to amend the £500 maximum and £10 minimum contribution figures by order