Settlement agreement

[roman]

Hi I left Royal Mail on a settlement agreement and was told in the leaving contract I was a good leaver.I am in the process of trying to redeem my shares but have been told I am liable to pay tax on some of them. Has anybody else had any problems occurring because of this ?

[timbo1234]

Hi I left Royal Mail on a settlement agreement and was told in the leaving contract I was a good leaver.I am in the process of trying to redeem my shares but have been told I am liable to pay tax on some of them. Has anybody else had any problems occurring because of this ?

What is a settlement agreementif you don't mind me asking?

When you sell shares tax is deducted at the basic rate on part of them. That is normal practice no matter what. If that is wrong and you don't pay tax HMRC will refund it to you if you apply for it now or wait until the end of the tax year and it will be sent to you automatically.

[Jefferson Starfish]

A good leaver as far as the shares are concerned, is one who leaves RM via redundancy, IHR or is over 60.

[roman]

Thanks

[tractorboy2]

Hi I left Royal Mail on a settlement agreement and was told in the leaving contract I was a good leaver.I am in the process of trying to redeem my shares but have been told I am liable to pay tax on some of them. Has anybody else had any problems occurring because of this ?

If you had a settlement agreement and were planning on selling your shares , why didn't you sell them while working your notice ?
Then you wouldn't have paid any tax.

I left under the same circumstances as you and subsequently transferred them to a nominee account , when I come to sell them , I believe there is a nominal charge but it is still tax free ( I would have to check if the latter is correct though)