Discussion
Does anyone know about SAYE schemes ?
The wifebeast was in SAYE for about 18 months before being made redundant. During that time she had a 3 month payment holiday.
After being made redundant she is allowed to contribute for another 6 months.
We have a letter from the scheme administrators written acknowledging her redundancy and saying that any missed contributions can be made up prior to the revised (redundancy +6 months) maturity date. Having called them to pay this they say it wasn't meant to imply that she could make up for the payment holiday months (although the way it's worded it does imply this).
Does anyone know if this is likely to be true and based on HMRC rules, scheme rules, or twaddle and something we should pursue (current value is 4x the option price) ?
The wifebeast was in SAYE for about 18 months before being made redundant. During that time she had a 3 month payment holiday.
After being made redundant she is allowed to contribute for another 6 months.
We have a letter from the scheme administrators written acknowledging her redundancy and saying that any missed contributions can be made up prior to the revised (redundancy +6 months) maturity date. Having called them to pay this they say it wasn't meant to imply that she could make up for the payment holiday months (although the way it's worded it does imply this).
Does anyone know if this is likely to be true and based on HMRC rules, scheme rules, or twaddle and something we should pursue (current value is 4x the option price) ?
As far as I'm aware you get the contributions amount plus any interest payable tax free. You can use this to buy shares at the option price or take the money. As you haven't completed the full 3 years or can't make it up with the +6mths I don't believe you are eligible for the bonus.
Oh and the shares will be liable to CGT when sold based upon the option price.
The +6mths is just for future contributions if you were 2.5 years or more into it to get the full 3 year bonus, not previous holidays.
Added: - Nice to see one with some value in it, most of the recent examples I've seen from big companies have performed so poorly they struggle to make the option viable after 3 years even with an up front discount on the option price.
Oh and the shares will be liable to CGT when sold based upon the option price.
The +6mths is just for future contributions if you were 2.5 years or more into it to get the full 3 year bonus, not previous holidays.
Added: - Nice to see one with some value in it, most of the recent examples I've seen from big companies have performed so poorly they struggle to make the option viable after 3 years even with an up front discount on the option price.
Edited by OneDs on Friday 5th November 13:13
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