Save As You Earn (SAYE)

JayBee21

Due to how the pandemic has affected share prices, I am considering cancelling my SAYE early. I agreed to a 5 year plan, and have already completed about three and a half of them, i.e. only about eighteen months to go. I honestly don't see the share price recovering that soon, and I suspect that even then it will still be lower than my buy-in price from 2017. So I'm currently thinking about if I'd be better just cancelling it now and getting my money back now, rather than actually putting any of it towards shares. As I won't have completed the full term I know I won't get the bonus, and I doubt the savings will have made any interest, I'd literally just be getting back what I've put in so far, which would be in the region of about £1400. I therefore don't think I'd have to pay Capital Gains a) because of the relatively low amount, and b) because I haven't actually gained anything. But I'm just trying to find out if I would have to pay tax on the amount itself when it goes into my bank account. As far as I'm aware, it went into the savings account from my NET pay, i.e. I'd already paid tax on it, but I just want to make sure I've understood this correctly. Does anyone know how it works? Thanks.

MX5huggy

You have not given a good reason to get out now. You’ve not named the company, but share prices change for assorts of reasons. 

If the company is currently cheap a bidding war to take it over could ensue. They could announce major job losses (markets always like this). They could launch a new product or service.

MDMD

SAYE Payments are always made from Net pay and so there will be no tax to pay.  Capital gains won’t apply because you don’t own the shares until the plan matures.

I did the same as you although Equiniti didn’t have my bank details, wouldn’t accept them from me and my Payroll were being too slow so I had to have a £7,000 cheque sent in the post…..