selling or keeping

Spedley · Post by **Spedley** » 12 Sep 2016, 20:25

You can still keep your shares if you leave (after the 3 years) and not pay tax - or at least that is what I thought I read in the leaflet we got a couple of weeks ago.

And I can't remember what you pay tax on? Is it the original share price, current share price or difference between prices?

Post by **wacko74** » 12 Sep 2016, 20:51

2214MN wrote:Selling. Been offered new job starting end of October, perfect timing to leave.

Just because you're leaving at the end of Oct that doesn't mean you have to sell your shares... they're still yours once you leave. (Right?)

Postie45 · Post by **Postie45** » 12 Sep 2016, 21:37

wacko74 wrote:
2214MN wrote:Selling. Been offered new job starting end of October, perfect timing to leave.
Just because you're leaving at the end of Oct that doesn't mean you have to sell your shares... they're still yours once you leave. (Right?)

i think you are forced to withdraw them at that point

Post by **aiden01** » 12 Sep 2016, 22:49

Spedley wrote:You can still keep your shares if you leave (after the 3 years) and not pay tax - or at least that is what I thought I read in the leaflet we got a couple of weeks ago.

And I can't remember what you pay tax on? Is it the original share price, current share price or difference between prices?

think u pay tax and ni up to £4.89 after that tax free

Postie45 · Post by **Postie45** » 12 Sep 2016, 23:12

im sure i read somewhere you pay tax on the initial value or the selling value whichever is lowest, so in our case almost certainly the opening value.

Post by **2214MN** » 13 Sep 2016, 09:35

Postie45 wrote:
wacko74 wrote:
2214MN wrote:Selling. Been offered new job starting end of October, perfect timing to leave.
Just because you're leaving at the end of Oct that doesn't mean you have to sell your shares... they're still yours once you leave. (Right?)
i think you are forced to withdraw them at that point

Yeah I thought you lost them or is it only if you leave before the three years is up you lose them?

Post by **Theghost** » 13 Sep 2016, 11:48

I think the ruling is - Given a set of free shares lose them if you leave within 3 years,So the 1st lost recieved are yours to do what you want after 15th october.
If you leave on the 16th october you keep the 1st lot but any recieved after you lose.
Basically,Any shares you have recieved you need to remain in the busisness for 3 years after to cash in,Unless you retire or are made redundant.

happy804 · Post by **happy804** » 13 Sep 2016, 12:47

The selling date is the 15th right ? This is a Saturday so no trading. Would would be offered the price at close of play at 4:30 on the Friday ?

Rumple · Post by **Rumple** » 13 Sep 2016, 14:01

Rainbow wrote:worth buying some more if like me you have money in an ISA earning less than 1% interest.

If that's the case why have you kept your money "in an ISA earning less than 1% interest?"

Postie45 · Post by **Postie45** » 13 Sep 2016, 14:10

2214MN wrote:
Postie45 wrote:
wacko74 wrote:
2214MN wrote:Selling. Been offered new job starting end of October, perfect timing to leave.
Just because you're leaving at the end of Oct that doesn't mean you have to sell your shares... they're still yours once you leave. (Right?)
i think you are forced to withdraw them at that point
Yeah I thought you lost them or is it only if you leave before the three years is up you lose them?

once you have been allocated the shares after 3 years they are yours but held in the scheme. If you leave at that point they force you to withdraw those shares and you have to pay the tax & NI.

toomuchcoke · Post by **toomuchcoke** » 13 Sep 2016, 14:45

Rumple wrote:
Rainbow wrote:worth buying some more if like me you have money in an ISA earning less than 1% interest.
If that's the case why have you kept your money "in an ISA earning less than 1% interest?"

Yeah ... Open a TSB Plus account and get 5% on £2k so long as you pay £500/month in (which you could do with a pair of standing orders, one to pay in £500 one day and then pay it back the next day) and then open a pair of Tesco Current Accounts and get 3% on £6k (£3k per account).

Post by **TrueBlueTerrier** » 13 Sep 2016, 15:45

Postie45 wrote:im sure i read somewhere you pay tax on the initial value or the selling value whichever is lowest, so in our case almost certainly the opening value.

Technically correct, though its not the initial value (which was £3.30) but the mid price on the day they were given to us.

aiden01 wrote:think u pay tax and ni up to £4.89 after that tax free

.

IIRC thats completely correct.

Postie45 · Post by **Postie45** » 13 Sep 2016, 16:14

TrueBlueTerrier wrote:
Postie45 wrote:im sure i read somewhere you pay tax on the initial value or the selling value whichever is lowest, so in our case almost certainly the opening value.
Technically correct, though its not the initial value (which was £3.30) but the mid price on the day they were given to us.

yes which is 489.00p for a total of £2,997.57, which is a little less tax than on the current £3,138.56 total

makingsounds · Post by **makingsounds** » 14 Sep 2016, 18:55

happy804 wrote:The selling date is the 15th right ? This is a Saturday so no trading. Would would be offered the price at close of play at 4:30 on the Friday ?

In case the demand to sell SIP 2013 Free Shares from 15 October 2016 means that there are more individual orders to sell Royal Mail shares than can be processed in an orderly way. This could impact the Royal Mail share price and the share price at which employees are able to sell their shares.. To try to reduce that impact, we have asked Equiniti to combine all sell requests that are made on the same day. Equiniti’s brokers will then try to sell the shares at the best possible share price over the course of the following days. The period of time over which the shares are sold will be affected by how many employees choose to sell their shares on any given day. It is likely, but not certain, that the price at which your shares are sold will be somewhere between the highest and lowest share price on the stock market on the day they are sold. If you sell your shares the first week you are able to, you will not be able to see the share price at which your shares are sold until after they are sold. All employees who make a sell request on the same day will sell their shares at the same share price. So it does not matter what time of day you make your sell request.

Spedley · Post by **Spedley** » 14 Sep 2016, 19:48

yes which is 489.00p for a total of £2,997.57, which is a little less tax than on the current £3,138.56 total

At that price I won't be selling - do we pay 12% NI these days?

with 20% tax and 12% NI for 613 shares @ 513.96p
take home is 613 shares x (513.96 - 489 x 0.32) / 100
=£2191
Nearly £1000 in tax!

It is likely, but not certain, that the price at which your shares are sold will be somewhere between the highest and lowest share price on the stock market on the day they are sold

Not quite sure what that means?

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