Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what steps he is taking to simplify save as you earn schemes and share incentive plans to encourage more people to save.

The government offers four tax advantaged share schemes, Company Share Option Plan, Share Incentive Plan, Enterprise Management Incentives and Save As You Earn. These enable employers and their employees to mutually benefit from generous Income Tax, National Insurance, and Capital Gains Tax reliefs when they participate. At Autumn Budget 2017 the government announced that employees on the Save As You Earn scheme who take maternity or parental leave will be able to pause their contributions for up to 12 months, extended from the previous limit of 6 months. There are currently no other plans to make changes to the schemes. The government keeps all areas of the tax system under review.

The government is also committed to supporting savers of all incomes and at all stages of life. We have introduced a range of measures, including the Personal Savings Allowance, which mean that over 95% of people pay no tax on their savings income. We have also introduced the Lifetime ISA, which supports younger people to save for the long term by offering them a 25% bonus from the government on savings of up to £4,000 annually.