ETASSUM34030 - Schedule 3 SAYE option schemes: Linkage to Savings (Arrangement): Certified Schedule 3 SAYE savings arrangement

The related savings contract must be under a certified Schedule 3 SAYE savings arrangement which has been approved by HMRC for the purposes of Schedule 3.

Paragraph 48(1) defines “certified SAYE savings arrangement” as having the meaning given by Section 703(1) of Income Tax (Trading and Other Income) Act (ITTOIA) 2005. These are arrangements under which an individual who is eligible to participate in a Schedule 3 SAYE option scheme enters into a contract to make periodical contributions for a specified period for the purpose of being able to participate in that scheme. Section 705 of ITTOIA 2005 requires such arrangements to have been certified by the Commissioners for HMRC. 

In order for HMRC to consider the authorisation of a bank or building society as a certified SAYE savings provider, the bank or building society will need to contact HMRC via the following addresses: 

Charities, Savings and International 1  
HMRC  
BX9 1AU  
or email [email protected] 

Please ensure the application is clearly titled ‘HMRC approval for certification as a SAYE savings provider’ and provide the following information:  

  • Confirmation that the bank satisfies the definition of a bank as described in section 991(2)(b) of the Income Tax Act (ITA) 2007.  
    This section states that a bank is a ‘person who has permission under Part 4 Financial Services and Markets Act(FISMA) 2000 to accept deposits'

  • Confirmation that the building society satisfies the definition of a building society as described in section 704(5)(a) ITTOIA 2005.   
    This section states that a building society arrangement means an arrangement which provides for contributions to be paid by way of investment in shares in a building society

  • Complete and return the SAYE application form to become an authorised SAYE savings arrangements provider

  • Confirmation that the bank or building society is authorised and regulated by the Prudential Regulatory Authority or the Financial Conduct Authority and provide the registration number  

  • Confirmation that the bank or building society can satisfy the process set out in the specimen SAYE prospectus

  • Provide contact details including the full name, email and postal address of two persons in the Bank or Building society who should receive the new prospectuses as and when these are issued 
     

HMRC will consider the application and if it is approved then a confirmation letter will be issued along with a link to the latest prospectus and the certification to apply that prospectus can be provided on application to [email protected]