Leaving after my 60th birthday.

Poshpost · Post by **Poshpost** » 18 Feb 2017, 16:10

I have decided to hand in my resignation a few days after my 60th birthday in June this year. I understand that this will mean I am a "good leaver" and I will be able to take all the shares issued thus far without any deductions for tax or National Insurance.

I have managed to place all of my 30 days annual leave for 2017/18 before my planned leaving date and I understand that I will have to pay back the majority of those days when I leave. Can anyone tell me the cash calculation that is made to pay back leave and if there are any other consequences of leaving having taken all of your annual leave allocation before you have "earned" the days.

NWpostie · Post by **NWpostie** » 19 Feb 2017, 10:17

Have you claimed your pension yet ? I would get that sorted out before tendering your resignation or the better option "retire" you will still retain your shares anyway if you retire.

rehabron · Post by **rehabron** » 20 Feb 2017, 12:21

Poshpost wrote:I have decided to hand in my resignation a few days after my 60th birthday in June this year. I understand that this will mean I am a "good leaver" and I will be able to take all the shares issued thus far without any deductions for tax or National Insurance.

I have managed to place all of my 30 days annual leave for 2017/18 before my planned leaving date and I understand that I will have to pay back the majority of those days when I leave. Can anyone tell me the cash calculation that is made to pay back leave and if there are any other consequences of leaving having taken all of your annual leave allocation before you have "earned" the days.

RM financial year starts on the 1st April 2017 to 31st March 2018 and you are finishing in June 2017 having completed 3 months of 12 months. Rough guide is 1/12th of holiday entitlement accrued each month. You have completed 1/4 of your yearly entitlement so would be expected to return 3/4 of your holiday pay by leaving in June. Give a reasonable advanced warning of your retirement as you also have a right not to have this amount deducted from your final salary without your agreement and conditions within your contract of employment.
With regards to your shares you will be able to take these as you are leaving on " good terms" but be careful if you take all of your shares and part of these have not gone the full 5 year distance then you will have to pay capital gains tax on this amount.

Post by **RobertT** » 20 Feb 2017, 15:49

If you leave after age 60 you’re deemed to be retiring and so become a good leaver, and get to keep all your shares free from any income tax or NI.

Capital Gains Tax is only payable if your gain is more than £11,100 in this tax year. So if selling your RM shares is your only gain, then CGT isn’t an issue.

rehabron · Post by **rehabron** » 20 Feb 2017, 16:32

2. Share Incentive Plans (SIPs)
If you get shares through a Share Incentive Plan (SIP) and keep them in the plan for 5 years you won’t pay Income Tax or National Insurance on their value.
You won’t pay Capital Gains Tax on shares you sell if you keep them in the plan until you sell them.
If you take them out of the plan, keep them and then sell them later on, you might have to pay Capital Gains Tax if their value has increased.
Robert T my posting should have been in reference to the 5 years for payment of income tax or national insurance. I mentioned capital gains tax should they have been sold later on. Going by your postings on pensions and shares you have far more knowledge than me on this subject.
Long may you continue sharing your knowledge on this site which is appreciated by the readers.