»Ê¹ÚÌåÓýapp

Pargraph 26 Schedule 3 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA)

Bonus rates are expressed as the number of monthly contributions comprised in 3 or 5 year bonuses.

If the savings contract is completed and the 36 or 60 monthly contributions made, the employee is entitled to a bonus equivalent to the specified number of monthly contributions referred to in the relevant prospectus.

If the contributions are repaid after 3 years or 5 years, as applicable, a bonus is payable.

If application for repayment is made before the 3 or 5 year point, the employee is not entitled to any bonus, but is entitled to interest. »Ê¹ÚÌåÓýapp relevant percentage rate of interest is calculated in line with the SAYE bonus rate automatic mechanism and the ³§´¡³Û·¡Ìý±è°ù´Ç²õ±è±ð³¦³Ù³Ü²õ. (this link goes to the specimen bank version of the prospectus on gov.uk. »Ê¹ÚÌåÓýapp prospectuses for building societies and European institutions contain the same terms and are available on request to HMRC)

Bonuses and interest received are not taxable (Section 702 ITTOIA 2005).