Hi
I'm pretty sure I know the answer to this but am going to ask anyway..
Am currently going down the IHR process. Will the shares we have been issued have any bearing on the IHR payment I will receive?
Cheers
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IHR & Shares
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Guevarista
- Posts: 79
- Joined: 04 Mar 2010, 17:38
- Gender: Male
Re: IHR & Shares
No bearing on the IHR figure, and as a 'good leaver' you'll retain the shares. However, you will still have a potential liability for Income Tax & NI for the 3 year period, and a potential CGT liability for 2 further years... Try to hang on 'til April and bag the 2nd issue of shares (which you will forfeit if you leave). Hope that's helped, and good luck!
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Johnny_Rad
- Posts: 62
- Joined: 20 Nov 2007, 20:09
Re: IHR & Shares
WOW! Thanks for the reply. I actually thought I would loose them.
Cheers
Cheers
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Johnny_Rad
- Posts: 62
- Joined: 20 Nov 2007, 20:09
Re: IHR & Shares
Sorry! Forgot to ask. Will I be entitled to any money From the agreement. I haven't read a lot onto it as I knew I was on my way out.
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RobertT
- EX ROYAL MAIL
- Posts: 6687
- Joined: 09 Sep 2007, 14:26
- Gender: Male
Re: IHR & Shares
The following is paraphrased from page 23 of the 'guide to RM shares' that we all recieved a few months ago:Guevarista wrote:No bearing on the IHR figure, and as a 'good leaver' you'll retain the shares. However, you will still have a potential liability for Income Tax & NI for the 3 year period, and a potential CGT liability for 2 further years... Try to hang on 'til April and bag the 2nd issue of shares (which you will forfeit if you leave). Hope that's helped, and good luck!
If you leave RM for any of the 'good reasons' the trustee will take your free shares out of the SIP. You will not pay any income tax or NI on the value of your free shares, regardless of when you leave.
If the shares are taken out of the SIP and held for an amount of time then Capital Gains Tax may be payable, but it won't be as long as they are kept in the SIP until they are sold.
So as long as you sell the shares at the time of leaving, no tax should be payable at all.
Links to all RM pension related websites are here
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Duckins
- Posts: 17
- Joined: 12 Nov 2012, 08:22
- Gender: Male
Re: IHR & Shares
Do that mean you still get the share money if you leave to leave royal mail to get amother job?
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RobertT
- EX ROYAL MAIL
- Posts: 6687
- Joined: 09 Sep 2007, 14:26
- Gender: Male
Re: IHR & Shares
If you're a 'good leaver' which means redundancy,IHR or retiring after 60 then yes you keep them. Plus I don't think there's anything really stopping someone over 60 leaving RM, keeping the shares and getting another job afterwards. If you're under 60 and leave within the 3 year time limit then you will lose them.Duckins wrote:Do that mean you still get the share money if you leave to leave royal mail to get amother job?
Links to all RM pension related websites are here
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k979aaa
- Posts: 12578
- Joined: 03 Sep 2007, 19:14
- Gender: Male
- Location: THE NORTH
Re: IHR & Shares
Best adviceGuevarista wrote:No bearing on the IHR figure, and as a 'good leaver' you'll retain the shares. However, you will still have a potential liability for Income Tax & NI for the 3 year period, and a potential CGT liability for 2 further years... Try to hang on 'til April and bag the 2nd issue of shares (which you will forfeit if you leave). Hope that's helped, and good luck!