Buy shares and we’ll match

Last updated January 2011

In a nutshell

UK Sharepurchase is a flexible and easy way to acquire Barclays shares. It’s tax efficient too and what’s more, we’ll match your contributions up to £600. The amounts will be deducted from your pre-tax salary up to a maximum of £1,500 per year (or 10% of salary, if lower) and the shares will be held on your behalf for five years. UK Sharepurchase is open to all eligible employees and you can join at any time*.

Although UK Sharepurchase is a convenient way of investing in Barclays, it might not be suitable for everyone. You will be acquiring Barclays shares and, like all shares, their value can go down as well as up. You should strongly consider seeking independent financial and/or tax advice before making your decision to join.

* You must have been employed by the Barclays Group for one month before joining UK Sharepurchase, be employed by a participating company and be a UK taxpayer.

What do you want to know? 

Some good reasons to join

An example

Step by step guide to how UK Sharepurchase works and how to join 

Your questions answered

What happens if I leave?

What happens next?

Tax and NIC implications

UK Sharepurchase booklet

Pension Comparison Table - Barcap employees

Pension Comparison Table

Further Information

Some good reasons to join

It’s flexible

UK Sharepurchase allows you to invest an amount every month, make one-off investments or do both in the same month. You can also change, stop and restart your investment, so it’s very flexible.

You can acquire Barclays shares by making regular monthly contributions from your pre-tax salary, or you can make one-off contributions which means you might consider using some of any cash bonus/cash incentive you may receive. These shares are called Partnership Shares.

We will match your contributions

For the first £600 worth of Partnership Shares you acquire each tax year, Barclays will match each Partnership Share with another share. These shares are called Matching Shares. Matching Shares have conditions attached to them and in certain circumstances you may lose them. You should carefully read the ‘What happens next’ and ‘Leaving Barclays’ sections, for further information.

You could get Dividend Shares

After you’ve acquired your Barclays shares, any dividend paid on your UK Sharepurchase shares will be used to acquire more Barclays shares. These are called Dividend Shares and can build up your investment even more.

This page and the UK Sharepurchase booklet will help you to understand the different ways you can put money into UK Sharepurchase, and what happens if you invest.

And it’s tax efficient too

UK Sharepurchase is also a tax efficient way to invest in Barclays shares. You can invest up to £1,500 or as little as £10 in each tax year in Partnership Shares from your pre-tax pay. If you keep your shares in UK Sharepurchase for five years from the date of award, you will never have to pay income tax or NI on the money you invest or on any increase in the value of your Barclays shares or the Matching Shares you get from Barclays. Please see ‘Tax and NIC implications’ for further information.

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An Example

The table below shows how UK Sharepurchase with Matching Shares works. The number of Barclays shares which are acquired for you by the UK Sharepurchase Trustee will depend upon the amount of your investment and the market value of these shares, as determined by the Trustee at the point of award. Any unused money will be carried forward to the next time you invest in UK Sharepurchase.

The example in this table shows a participant choosing to invest £50 on a regular monthly basis and also shows the option of making a one-off investment of £500 at any time during the year.

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Step by step guide to how UK Sharepurchase works and how to join

1. Can I join?

2. What do I need to think about?

• Read through the UK Sharepurchase booklet and other materials that are available to you, so that you understand how UK Sharepurchase works.
• Decide when and how much you want to invest. Remember the UK Sharepurchase limits.
• Decide whether to get independent financial and/or tax advice before making your decision.
• If you require more help, please contact the Barclays Share Plans Helpline on 0871 384 2224 or for overseas calls +44(0) 121 415 0154.

3. How do I join?

• You can join any time, but to start investing at the earliest opportunity you need to apply by the 1st of the month to have deductions made that month.
• Refer to the UK Sharepurchase information sent to you. This will include the reference number you will need when you apply.
• The easiest way to join is online at www.mybarclaysshares.co.uk, and just follow the online prompts.  
• You can also apply by completing a paper Application form and Sharepurchase Agreement.  You must send the completed form to the Share Plans team at the address provided below.

4. What happens after I’ve joined?

• Contributions will be automatically taken from your pre-taxed salary and/or bonus.
• You will receive a statement every six months (in May and November) showing the number of Partnership, Matching and Dividend Shares you hold.
• You can register for portfolio access at www.mybarclaysshares.co.ukand obtain up to date details of the shares you hold in UK Sharepurchase.

Remember:

Investments are made before the deduction of tax from your “UK Sharepurchase” salary. Your UK Sharepurchase salary is the money you earn before tax each month, including any allowances and bonus, but after taking off any Giving to Charity payments, salary sacrifices (e.g. childcare vouchers, bikes 4 work etc.) or pension contributions including AVCs. Any benefits in kind are ignored.

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Your questions answered

1. Can I join?

All colleagues who have been in continuous employment with the Barclays Group for a minimum of one month are eligible to participate in UK Sharepurchase. You must also be in employment with a participating company and be a UK taxpayer when the shares are acquired.

2. How do I apply?

Please see the instructions above. You can join at any time but remember to join by the 1st of the month in which you wish to start investing.

3. How do I make my contributions?

Contributions will be automatically taken from your salary and paid by your payroll to the UK Sharepurchase Trustee. You can invest every month or make one-off investments. You can also change, stop or restart your contributions at any time.

4. What is my UK Sharepurchase salary?

Your UK Sharepurchase salary is the money you earn before tax each month, including any allowances and bonus, but after taking off any Giving to Charity payments, salary sacrifices (e.g. childcare vouchers, bikes 4 work etc.) or pension contributions including additional voluntary contributions. Any benefits in kind are ignored.

5. How much can I contribute?

It’s up to you how much you want to contribute. You can contribute from as little as £10 up to a maximum of £1,500 in any tax year. However the maximum amount you can invest at any one time is the lower of:

• £1,500; and
• 10% of your UK Sharepurchase salary since the start of the tax year less any amounts that you have already invested in UK Sharepurchase since the start of the tax year.

Contributions are made before deduction of tax from your 'UK Sharepurchase salary' (see Q4).

6. What about state benefits?

You should pay particular attention to the section in the UK Sharepurchase Agreement headed “Notice to Participant about Possible Effect on Benefits”. Acquiring Partnership Shares under UK Sharepurchase may affect your entitlement to certain social security benefits, statutory maternity pay and statutory sick pay. This is because you would not have paid NI on the pay which you used to acquire Partnership Shares. This should only affect a small number of people.

HM Revenue & Customs (HMRC) has produced a leaflet (IR177) which explains this in more detail. You can download a copy from the HMRC website www.hmrc.gov.uk/pdfs/ir177.htm

7. What happens if I am under 18?

If you are under 18 you may, if you are eligible, join UK Sharepurchase but your parents, grandparents or guardian must apply on your behalf. To do this please complete a paper Application form and Sharepurchase Agreement putting the name and address of the person applying on your behalf in the box on the front page headed “Participant” and specify their relationship to you. They should then sign and date the Agreement and they should state that they are signing it on your behalf.

8. How are the shares acquired?

The money that you contribute is used to acquire Partnership Shares. These shares will be acquired every month by the UK Sharepurchase Trustee who will hold these shares on your behalf. Your completed instructions must be received by the first day of the month in which you wish your investment to be deducted from your salary. You must be employed on the last day of the month in which your payroll deduction is taken.

The award dates are set in advance and are usually the 7th calendar day of each month (or next UK business day) following the month in which the deduction was made from your UK Sharepurchase salary. The number of Barclays shares that are acquired for you will depend on the amount you are investing and the market value of these shares as determined by the Trustee at the point of award.

If you wish to make a one-off investment later in the year, go to www.mybarclaysshares.co.uk and follow the onscreen prompts.  Alternatively you can send in a signed and dated Application form and Sharepurchase Agreement.

The example below shows when the investment is deducted from your salary and when your shares will be awarded in relation to when you apply.

Example:

• Instructions received between 14th January and 1st February.
• Appropriate deduction made from February salary (23rd February) to form your investment.
• Your investment is used to acquire shares on 7th March (or next business day if this falls on a non-business day).

9. How risky is my investment?

You are acquiring shares at market value. The value of shares can go down as well as up.

You should think very carefully about whether investing in shares is right for you and how much of your total investments will be made up of Barclays shares. You should consider seeking independent financial and tax advice before making any decision.

10. Who owns the shares?

You own the UK Sharepurchase Shares as soon as they are acquired for you and are entitled to dividends and other shareholder rights. The shares are held on your behalf by the UK Sharepurchase Trustee. Remember you may lose Matching Shares if you take out Partnership Shares early. A Barclays shareholder has the right to vote. The UK Sharepurchase Trustee holds your UK Sharepurchase Shares on your behalf and you may direct the Trustee to exercise voting rights attached to your UK Sharepurchase Shares.

You can direct the Trustee of the UK Sharepurchase Plan to vote on your behalf by requesting an online voting ID from the UK Sharepurchase Helpline on 0871 384 2224 or if overseas call +44(0) 121 415 0154. A voting ID together with instructions on how to vote online will normally be emailed to you within 48 hours of request. You will need to allow sufficient time for receipt of this information.

11. Is there a discount on the cost of the shares?

The price of the shares is not discounted. However, Barclays gives you the right to receive one free Matching Share for each Partnership Share you acquire up to £600. On Partnership Shares acquired in excess of £600, you don’t get any Matching Shares.

Also, you will not pay any stamp duty or brokers commission on the shares you acquire.

12. Do I get dividends on my UK Sharepurchase Shares?

Yes. When Barclays pays a dividend they are automatically used to acquire more Barclays shares.

13. Can I remove my Partnership, Matching and Dividend Shares from UK Sharepurchase?

Please see the Tax and NIC implications section for more information regarding removal of shares from the plan. However, you should consider seeking independent tax advice.

14. What happens if I am not paid via the UK payroll, if I take maternity leave, a short-term career break or any other unpaid leave?

You will continue to be eligible to participate in UK Sharepurchase. However, payments to the UK Sharepurchase must be made directly from salary via UK payroll, so once your pay drops below a certain level (or ceases to be paid via UK payroll) no deductions will be taken.

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What happens next?

Partnership Shares

•  The number of Barclays shares acquired for you will depend upon the amount of your investment and the market value of these shares as determined by the Trustee at the point of award.
• Any unused money will be carried forward and added to the next investment you make (e.g. the following month).
• You can take your Partnership Shares out at any time but may forfeit any associated Matching Shares held for less than 3 years. You should also note the tax implications below.

Matching Shares

• Barclays will give you one Matching Share for each Partnership Share you acquire, up to the first £600 worth of Partnership Shares you acquire in a tax year.
• You cannot take your Matching Shares out of UK Sharepurchase before three years.
• Please note the tax implications below of taking your Matching Shares out of UK Sharepurchase on or after three years.
• If you remove Partnership Shares from UK Sharepurchase before three years, you will lose your associated Matching Shares.

Dividend Shares

• Whenever a dividend is paid on your UK Sharepurchase Shares, the Trustees will receive dividends on your behalf and these will be used to acquire more shares called Dividend Shares (up to a limit of £1,500 in any tax year).
• You can only take Dividend Shares out after three years and when you do take them out you will not pay income tax or NI.
• You cannot lose your Dividend Shares (they are your shares, just like Partnership Shares).

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Tax and NIC implications

Please see the full tax implications of removing shares from UK Sharepurchase at various times below.

Remember:

You don’t have to take your Partnership or Matching Shares out of UK Sharepurchase after five years (three for Dividend Shares). There are tax benefits to keeping them in. For example, all gains are free of Capital Gains Tax (CGT) until they are taken out of UK Sharepurchase. This means that if you sell your shares directly from UK Sharepurchase, there will be no CGT liability; however, if you take the shares out of UK Sharepurchase and sell them at a later date at a higher price, CGT will need to be considered.

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What happens if I leave?

If you leave Barclays your shares must be removed from UK Sharepurchase. Depending on your reason for leaving, different circumstances may apply.

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Further information

The details given on this site are only a general guide. If there is any conflict between this site and the rules of UK Sharepurchase, the rules of UK Sharepurchase plus any applicable law will apply and will over-ride this site.

You can contact the Share Plans team via one of the options below.

Telephone Enquiries:

0871 384 2224* or if overseas call +44(0) 121 415 0154

Email Enquiries:

Postal Enquiries:

Operations Department
PO Box 4766
Worthing
BN99 6HF

Fax Enquiries:

+44(0) 1903 833086

*Calls charged to this number are charged at 8p per minute from a BT landline. Other telephony provider costs may vary.

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