Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment the Government has made of the potential merits of changing the rules governing Save As You Earn (SAYE) schemes to make resignation from an employer a good leaver reason.

Save As You Earn (SAYE) is a scheme that allows employees to save up to £500 a month over a three or five year savings contract. Savings can be taken as cash, or used to purchase tax-advantaged company shares at a price determined at the start of the contract. The scheme is intended to support staff retention and engagement, by encouraging employees to regularly save towards a financial reward offered by the employer.

The SAYE scheme allows businesses to distinguish between a “good leaver” and a “bad leaver” if an employee leaves within the agreed savings period. The Government believes that these current rules are an appropriate way to support the policy’s aims. “Good leavers”, such as those who leave the company on retirement or redundancy, can retain the scheme's tax advantages when exercising their share options. Where employees leave the company voluntarily, they can still withdraw their accrued savings in the scheme, but do not receive tax advantaged shares. No assessment has been made of making resignation from an employer a “good leaver” reason.

The Government keeps all taxes and reliefs under review.