Abbreviation of "Save As You Earn" Plan, a type of stock purchase plan in the United Kingdom. A SAYE Plan can be structured rather like tax-qualified (Section 423) ESPPs in the United States. It gives participants a chance to save up to £500 a month for a period of three, five, or seven years. (In the seven-year period, savings can be made for only the first five years after grant.) At the end of this savings period, participants can buy shares at the stock price on the starting date with a discount of up to 20% from that starting price (this is the equivalent of a lookback plus a discount in a US tax-qualified ESPP). Both the purchase discount and the interest on savings in a SAYE Plan are tax-free, though capital gains tax applies when shares are sold. For details, see the United Kindgom
page of the Global Tax Guide at myStockOptions.com.