| Free Shares | Sharesave | Partnership Shares | |
|---|---|---|---|
| How much can I contribute? | These are Free Shares, they won’t cost you a penny! | Between £5 and £500 a month from your net pay. | Between £5 and £138 every 4 weeks (£1,800 per tax year), from your pre-tax pay (or 10% of your income for the tax year if lower). |
| What is the savings period? | There isn’t a savings period as the shares will be awarded on 2 July 2024. | 3 or 5 year fixed term. | Shares are purchased every 4 weeks. |
| Can I change my monthly contribution? | No contribution is required. | No. | Apply, change and cancel at any time of the year, via the Portal. Make sure your changes are input at least 15 days before your next payday to ensure your changes are completed. |
| What are the main benefits? | Shares that are held in Trust for at least five years are free from Income Tax, National Insurance Contributions (‘NICs’) and potentially Capital Gains Tax (‘CGT’). |
Option price is fixed before the start of the Plan. If you choose to save for three years, a tax-free bonus of 1.1 multiplied by your monthly contribution will be added to your savings, while if you choose to save for five years, a tax-free bonus of 3.2 multiplied by your monthly contribution will be added to your savings. |
Shares that are held in trust for at least five years are free from Income Tax and NICs and potentially CGT. |
| Are there any risks? | The value of shares can go down as well as up. | You can always receive the return of your savings. You don’t have to buy the shares if the share price falls. | The value of shares can go down as well as up. |
| Do I qualify for any dividends payable? | Yes. | Not until you’ve bought the shares at the end of the savings contract. | Yes. |
| What is the tax position? |
Unless you leave the SIP (‘Share Incentive Plan’) due to specific circumstances, Income Tax and NICs are normally payable on shares removed from the Trust before they have been held for 5 years. There is no CGT liability when shares are sold direct from the Trust. |
Savings are made from net pay. No Income Tax or NICs are normally payble when exercising your option to buy shares. CGT may be payable on the difference between the sale proceeds and the option price paid on exercise of the share option. |
Partnership Shares are acquired out of gross pay. Unless you leave due to specific circumstances, Income Tax and NICs are normally payable on shares removed from the Trust before they have been held for 5 years. There is no CGT liability when shares are sold direct from the Trust. |
| When can I join? | If you are employed on or before 6 June 2023 you are eligible and will receive an invitation which is due to be issued on 6 June 2024. | If you are employed on or before 6 March 2024 you are eligible and will receive an invitation which is due to be issued on 6 June 2024. | If you have 12 months’ employment service or more, you will be able to join at any time of the year via the Portal. |