SAYE sharesave calculator, 2026/27

How this is calculated

SAYE (Save As You Earn, or Sharesave) lets you save between £5 and £500 a month by deduction from pay over a fixed three or five year term, at the end of which you have the option, but not the obligation, to buy shares at a price fixed when the scheme started, usually at a discount to the market price on offer.

There is no income tax or National Insurance on granting the option or on exercising it to buy the shares, which is the main attraction over simply buying shares on the open market. Tax only becomes relevant if and when you sell the shares, at which point capital gains tax applies to the difference between the sale proceeds and what you paid to exercise the option.

The annual exempt amount of £3,000 for 2026/27 covers modest gains entirely, and shares can be transferred into a stocks and shares ISA within 90 days of exercise, sheltering any future growth from both capital gains tax and dividend tax.

Why SAYE suits risk-averse savers

Unlike buying shares directly, SAYE carries no downside risk beyond the time value of the savings: if the share price falls below the option price you simply take your savings back in cash rather than exercising the option, so you cannot lose money on the scheme itself.

This makes SAYE attractive even for employees who are cautious about their employer's share price, since participation is effectively a one-way bet funded by regular payroll deductions.

Practical points

Leaving the company before the savings contract matures usually means the option lapses, though most schemes allow exercise within six months of leaving for reasons such as redundancy, retirement or ill health.

Because the scheme must be offered to all eligible employees on similar terms, SAYE is common in larger and listed companies, though HMRC's approval rules mean any qualifying UK company, private or listed, can in principle run one.

What happens to my savings if I don't want to buy shares?

You are never obliged to exercise the option. If the share price has fallen or you simply prefer cash, you can take your savings back, usually with a small tax-free bonus or interest depending on the scheme's terms.

Is there a minimum or maximum I can save?

Scheme rules typically allow monthly savings from £5 up to the current statutory maximum of £500, deducted directly from your net pay.

Do I pay tax when the option is exercised?

No, there is no income tax or National Insurance charge on exercising a genuine HMRC-approved SAYE option, regardless of how large the discount to market value turns out to be.

Can I put SAYE shares into an ISA?

Yes, shares acquired under SAYE can be transferred into a stocks and shares ISA within 90 days of exercise, which shelters any future gains and dividends from tax, subject to your annual ISA allowance.