Income Tax (Trading and Other Income) Act 2005 section 702

Interest under certified SAYE savings arrangements

Section 702 provides an income tax exemption for interest (including bonuses) earned under certified Save As You Earn (SAYE) savings arrangements, subject to certain conditions regarding authorised providers and building society status changes.

• Interest and bonuses earned under a certified SAYE savings arrangement are exempt from income tax
• The definition of a certified SAYE savings arrangement is set out in section 703, which specifies the conditions to be met by the savings schemes and their providers
• The exemption only applies where the provider of the arrangement is properly authorised under section 707, and is subject to rules on building society status changes under Schedule 12 to the Finance Act 1988
• For the purposes of this chapter, the term "interest" is broadly defined to include any bonus payable under the arrangement