26 Jul 2018, 14:27
mark.cup wrote:If it was another 3 year share save scheme where the end point was fixed I would personally be all over it
26 Jul 2018, 15:36
westy23 wrote:Thanks for the reply RobertT
And glad I understood it correctly.
Can I ask why you will not be partaking as I am wondering if I have missed something obvious?
26 Jul 2018, 16:51
26 Jul 2018, 18:51
26 Jul 2018, 21:04
26 Jul 2018, 22:03
26 Jul 2018, 23:05
27 Jul 2018, 13:11
27 Jul 2018, 14:00
Sputters2017 wrote:Does anyone know instead of taking a dividend. Would it be possible to do a drip .can't see an option in the booklet .also can you do a drip on the free shares
27 Jul 2018, 15:45
27 Jul 2018, 17:08
27 Jul 2018, 17:44
27 Jul 2018, 18:33
RedRich wrote:Would the money for this be better spent in AVC,s?
27 Jul 2018, 20:16
27 Jul 2018, 21:27
27 Jul 2018, 21:52
27 Jul 2018, 22:33
28 Jul 2018, 09:23
28 Jul 2018, 09:59
wandle wrote:One thing to consider if you are going to take part in this scheme: the disproportionately high charges Equiniti make for small share sales.
They charge 0.5% or a minimum of £17.50, whichever is the higher.
So shares purchased via the scheme in October 2018 must be held until October 2023 before you can sell them free of tax/NI. You cannot, in October 2023, sell any of the other shares you've purchased or been given free yet, without incurring tax/NI. So, if you've invested the maximum £100 per month and have 20 partnership shares + 2 free matching shares available to sell, let's say the share price at that future date is 600p
22 x 600p = £132*
a fee of £17.50 to sell is massive, (more than 13% of the shares' value) and eats up a big chunk of the £32 tax/NI you avoided when the shares were originally bought!
I'd say you really would be best waiting until you have a least a year's worth of shares bought under this scheme that have reached the maturity date.
BUT... if you want to do that, you've got to wait until October 2024 i.e. SIX years from when you first start buying shares in this scheme !!!
Lets assume you've then accumulated around 264 shares that are past their 'tax/NI free' date(s). Using the same guesstimate of the share price as in the above example
264 x 600p = £1584
a fee of £17.50 to sell is still steep, but a more bearable 1.1% of the value of the shares
*although if Royal Mail maintain their annual dividends at about 24p/share, dividend payments for that block of 22 shares would have amounted to £26.40 over the five years the shares had been held
28 Jul 2018, 10:02