SAYE in laymans terms for a numpty

princessdon

Can anyone tell me in laymans terms what advantages there are to a SAYE scheme?

The way I read it is this;

Despite them saying it has tax initiatives as they deduct at Net not gross there is no initial tax gain like a salary sacrifice.

There is zero interest payable on these savings

At the end of 5 years you can either buy shares (if they went up) or take the money and run (if they went down).

If you then sold the shares they would be tax free.


Or have I got this completely wrong. Sorry I am a complete numpty when it comes to Tax and Figures so any help is appreciated as google is vastly becoming my enemy if I have got the wrong end of the stick above.

agrinnall

That's basically right, although the last scheme I was in did pay interest if you decided to take the money rather than buy shares (this may well vary from scheme to scheme though).

Wikipedia has a fairly straightforward page on Sharesave

http://en.wikipedia.org/wiki/Sharesave

princessdon

Thank you, it's just that the links give conflicting information Re the Capital Gains and the brochure from work. I think I'll ask them for clarification before I jump in. HMRC set the interest rate apparantly and it's currently zero.

Thank you for your reply