SAYE and SIP
In February, we held a discussion forum about the change to SIP and SAYE savings limits. Since then, things have moved forward:
- The 6 April 2014 SAYE prospectus has now been issued and a number of SAYE launches are in planning, giving employees the opportunity to save up to the new monthly savings limit of £500.
- Instructions can now be taken for employees wishing to increase their SIP Partnership deductions from April. We have already changed some of our clients’ SIP plan parameters where they have communicated the limit increase to employees. ES Portal and telephony services have been updated to apply the limits as appropriate.
NISA and CGT
The government announced in the 2014 Budget that from 1 July 2014, ISAs will be simplified and a ‘New ISA’ (NISA) will be introduced. The annual limit will be raised to £15,000 – the biggest ever increase to ISA limits. HM Treasury have produced a helpful factsheet about the NISA. As share prices rise and increasing numbers of SAYE schemes are above water, employees will be able to transfer more exercised shares into an NISA and protect gains from Capital Gains Tax. The table shows the new limits:
|Individual Savings Account (ISA)||Tax Year 2013 – 2014||6 April 2014 – 30 June 2014||1 July 2014 – 5 Aptil 2015|
|Cash Value of ISA limit||£11.520, up to £5,760 of which can be saved in cash||£11,880 up to £5,940 of which can be saved in cash||£15,000|
|From 1 July 2014, the overall annual NISA limit for tax year
2014 – 2015 is £15,000
The new tax year exemption for Capital Gains Tax is:
|Capital Gains Tax||Tax Year 2013 – 2014||Tax Year 2014 – 2015|
|Annual exempt amount for individuals||£10,900||£11,000|
Registration of employee schemes
HMRC has been sending letters to companies about registering new and existing share schemes online. If you look after your company's employees share plans, you should be speaking with the team who manages your PAYE Online. HMRC ERS bulletins 13 and 14 outline the timelines and how to access the online service. Existing schemes will need to be registered online by 6 July 2015. The 2104-2015 annual share scheme returns will need to be filed online.