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Partnership & Matching..Leaving The Company

19 Sep 2018, 12:16

Im not to sure what happens to your bonus shares if you leave the company.

For instance I may be leaving in about 2-3 years.

Assuming I pay for the maximum amount of shares, Do you lose your 2 free shares you get every month when I leave.

Thanks

Partnership & Matching..Leaving The Company

19 Sep 2018, 14:42

It seems fairly straight forward to me!

Each month you buy an x amount of shares, each of those batches of shares has a 3/5 year holding period, exactly the same as the free ones.

If you sell any of those shares within 3 years of the initial purchase, you pay income tax and NIC's on your partnership shares, but you lose all your matching shares off RM.

If you sell between 3&5 years of the initial purchase you keep the matching shares but there might be income tax and NIC's to pay on both partnership and matching shares. See page 9 of your booklet.

If you sell after 5 years of the initial purchase, then there will be no income tax or NIC's to pay on any of the shares.

If you leave RM employment as a 'taxable leaver', the same applies as above.

If you leave RM as a 'tax exempt leaver', which is via IHR, VR or are aged 60+, then you get to keep all partnership and matching shares tax and NI free. See page 10!

So in practice, if you're planning on leaving in 2-3 years and you'll be below 60 when you do that, the benefits of this scheme are likely to be minimal. But if you'll be 60+ when you leave, then you'll potentially get the full benefits without having to hold any of the shares for the full 5 years.

Partnership & Matching..Leaving The Company

19 Sep 2018, 19:05

"So in practice, if you're planning on leaving in 2-3 years and you'll be below 60 when you do that, the benefits of this scheme are likely to be minimal. But if you'll be 60+ when you leave, then you'll potentially get the full benefits without having to hold any of the shares for the full 5 years."

Thats the clarification I was after.

Than you.

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