The Government has increased the maximum contribution limits for share incentive plans and has doubled the monthly contribution limit for Save As You Earn schemes to £500.
In the Autumn Statement, published today, the Government announced changes to the maximum limits up to which employees can contribute to share schemes. These changes will come into effect from April 2014.
The Statement sets out that the annual limits for Share Incentive Plans will increase to £3,600 a year for free shares and from £1,500 to £1,800 a year for partnership shares.
The maximum monthly amount an employee can contribute to Save As You Earn savings arrangements will increase from £250 to £500.
Phil Hall, special adviser to ifs ProShare, which represents the UK employee share ownership industry, says: “This is absolutely fantastic news for the millions of employees who will benefit from being able to save and invest more for their own futures.
“It also represents an opportunity for financial advisers to make sure their clients, who may be working for a company that offers an employee share plan, are aware of the potential benefits of participating in a share scheme, especially as they can now put more money in if they want to.”