Confirmation of increases in SIP and SAYE plan limits
Not much to report from Budget 2014 as far as employee share plans are concerned, given most of the changes were trailed in the Pre Budget Statement last November.The Chancellor confirmed that the
Not much to report from Budget 2014 as far as employee share plans are concerned, given most of the changes were trailed in the Pre Budget Statement last November.
The Chancellor confirmed that the individual limit on the amount of "free" shares that companies can award to employees under a share incentive plan (SIP) will increase from £3,000 to £3,600 per tax year. The individual limit on the amount of "partnership" shares that employees can purchase will increase from £1,500 to £1,800 per tax year (or 10% of an employee's annual gross salary).
As "matching" shares can be offered on the basis of up to two shares for every one partnership share purchased, the maximum value of the matching shares will increase to £3,600 per tax year.
For Save As You Earn (SAYE) plans, the amount that employees can save will increase from £250 to £500 per month. This means that for a five year SAYE plan, the maximum that an employee can save and use to buy shares in his or her employing company when the plan matures is £30,000.
All these changes are effective from 6 April 2014.
The increases in these limits will be very much welcomed by issuers and employees alike, as they are the first increases for over ten years (and the first since SIP was introduced in 2000).
The Chancellor confirmed that the individual limit on the amount of "free" shares that companies can award to employees under a share incentive plan (SIP) will increase from £3,000 to £3,600 per tax year. The individual limit on the amount of "partnership" shares that employees can purchase will increase from £1,500 to £1,800 per tax year (or 10% of an employee's annual gross salary).
As "matching" shares can be offered on the basis of up to two shares for every one partnership share purchased, the maximum value of the matching shares will increase to £3,600 per tax year.
For Save As You Earn (SAYE) plans, the amount that employees can save will increase from £250 to £500 per month. This means that for a five year SAYE plan, the maximum that an employee can save and use to buy shares in his or her employing company when the plan matures is £30,000.
All these changes are effective from 6 April 2014.
The increases in these limits will be very much welcomed by issuers and employees alike, as they are the first increases for over ten years (and the first since SIP was introduced in 2000).