TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

Change in Bonus Rates for SAYE Share Option Schemes

Changes are being made to bonus rates for Save As You Earn (SAYE) Share Option Schemes (sometimes referred to as ‘Sharesave’) to keep them in line with other interest rates. Employees who are already saving under existing SAYE contracts are not affected by these rate changes.

The bonus rates were last changed on 17 February 2009. The new bonus rates effective from 29 May 2009 will be:

Contract Type

Bonus Rate (Previous rates in brackets)

Annual Equivalent Rate (Previous rates in brackets)

3 year

0.3 × monthly payments (0.6)

0.54% (1.08%)

5 year

2.2 × monthly payments (2.6)

1.42% (1.67%)

7 year

5.2 × monthly payments (5.6)

1.84% (1.98%)

The Early Leavers’ Rate will change from 0.5% to 0.36%.

Full details on the bonus rate changes and the bonus rate mechanism are available from: http://www.hmrc.gov.uk/shareschemes/news/change-bonus-rates.htm.