Significant changes for SIP and SAYE share plans

The Chancellor’s Autumn Statement 2013, released on 5 December, announced considerable contribution changes to Share Incentive Plans (SIP) and Save As You Earn (SAYE) employee share plans. This is the biggest change in share plans since the introduction of both SIP and SAYE.

Leading developments

  • SAYE - the maximum monthly contribution amount has increased from £250 to £500
  • SIP – the cap on the monthly contribution for Partnership shares has also increased to £150 from £125, with the ceiling for Free Shares being raised to £3,600 from £3,000 
    • Matching share levels are expected to change and adjust in line with the increase for Partnership share contributions.  

This increase to contribution limits will make SIP and SAYE plans an even more attractive offering for employees. These developments will come into effect from April 2014, with further details being released over the next couple of weeks.

If you are an existing share plans client, your Relationship Manager will be in touch with you once further details have been received to discuss the changes and how they can be implemented to your Plan.

If you have any questions in the interim or wish to discuss a new SIP or SAYE share plan, please contact your Relationship Manager or dedicated Capita contact.

Find out more about our Share plan services

Date: 12 Dec 2013

© Capita plc 2014