SAYE shares question

stevenshm · Post by **stevenshm** » 07 Oct 2017, 13:23

Hello everyone
Does anyone know if there any tax or national insurance deductions to pay
if I decide to get to have my money paid back to me instead of buying any shares?
just wondered as we have been saving without paying any tax etc?

just wanted to know the chances are i will be buying shares but just incase?

Post by **RobertT** » 07 Oct 2017, 13:52

There is no income tax or national insurance to pay at any time, but there might be a small chance of having to pay capital gains tax when you come to sell any shares you buy.
This is taken from the SAYE booklet we got at the time:

What happens about tax?
In most circumstances you won’t have to pay income tax or National Insurance on your shares when you buy them, even though you will have been able to buy the shares for 20% less than the share price on the stock market when the scheme launched. However, you may have to pay capital gains tax (CGT) on any gain made between the option price and the market price when you sell the shares. Every person has a yearly CGT allowance. You will not have to pay CGT on any gains you make below your yearly allowance. For 2014-2015, the CGT allowance is £11,000.

You can view the booklet here: https://www.myroyalmail.com/all-documen ... %20RES.pdf" onclick="window.open(this.href);return false;

*The CGT allowance has since increased and is now £11,300.

claretandblue · Post by **claretandblue** » 07 Oct 2017, 13:59

Does anybody know what happenes if the share price goes below the 360p offer price ?

stevenshm · Post by **stevenshm** » 07 Oct 2017, 14:34

thank once again! Robert

Post by **TrueBlueTerrier** » 07 Oct 2017, 14:48

claretandblue wrote:Does anybody know what happenes if the share price goes below the 360p offer price ?

You take the money or buy shares at the price on the day. The £3.60 price is for when the share price is over that amount.

Alexei · Post by **Alexei** » 07 Oct 2017, 16:04

TrueBlueTerrier wrote: You take the money or buy shares at the price on the day. The £3.60 price is for when the share price is over that amount.

So if they drop below 360p, then we get them for the value they are trading at time of purchase?

Post by **TrueBlueTerrier** » 07 Oct 2017, 16:20

Alexei wrote:
TrueBlueTerrier wrote: You take the money or buy shares at the price on the day. The £3.60 price is for when the share price is over that amount.
So if they drop below 360p, then we get them for the value they are trading at time of purchase?

Yes. At least that's how I understand it.

Alexei · Post by **Alexei** » 07 Oct 2017, 16:55

TrueBlueTerrier wrote: Yes. At least that's how I understand it.

I read that a few weeks ago, and that was my interpretation of it also. I was thinking to take advantage of the lower trading price, you would have to withdraw savings, and purchase like you would any other shares on stock market. Hopefully it's not the case. I presume we will receive some communication in the coming months.

plaguelift · Post by **plaguelift** » 07 Oct 2017, 18:48

stevenshm wrote:Hello everyone
Does anyone know if there any tax or national insurance deductions to pay
if I decide to get to have my money paid back to me instead of buying any shares?
just wondered as we have been saving without paying any tax etc?

just wanted to know the chances are i will be buying shares but just incase?

If you decided to take your money out now, there is no tax or national insurance. You're only getting the money back that you put in. No charges whatsoever.

Post by **RobertT** » 08 Oct 2017, 07:20

When the savings term started we agreed to save a certain amount of money in order to buy a certain number of shares.
So if you’ve saved £360 over the savings term, you’ll be buying 100 shares at £3.60 each. That figure of £3.60 is fixed!

The actual share price at the time of purchase is irrelevant, it’s when you choose to sell them that’s important.

If you plan to buy and then sell your shares immediately, the actual share price will have an effect on the amount of profit or loss you might make. Therefore if the actual price is below or just above the option price, then you’re likely to make a loss – taking dealing costs into account. So it would be more sensible to just take your saved cash and either do with it what you want or you could choose to buy shares at the lower actual price on the open market instead.

If you plan to hold onto them for a period of time, then the actual price at purchase isn’t really important because it might increase over time, giving you the opportunity to make a profit. Plus you’ll also get some dividends along the way.

Post by **Judgee** » 08 Oct 2017, 08:20

You will have 6 months to choose when to purchase your shares after the scheme matures. Therefore you may want to wait and see what the share price is doing. You will be able to buy the shares at £3.60 for the whole 6 months so rather than just taking your cash back (tax free obviously as it is your own money) you could see what the share price does in the coming months. If it rises a bit you could buy and sell them for a quick profit. If it stagnates or falls just take you money back!

Alexei · Post by **Alexei** » 09 Oct 2017, 15:41

RobertT wrote:When the savings term started we agreed to save a certain amount of money in order to buy a certain number of shares.
So if you’ve saved £360 over the savings term, you’ll be buying 100 shares at £3.60 each. That figure of £3.60 is fixed!

That is what I thought to begin with. Agreement was 360p, doesn't matter if they are trading at 200 or 400 at the time of purchase, 360 is the agreed share price, but got slightly confused as people were saying if the price drops below 360, then you get them at the trading price, as opposed to the agreement.

wannabeek · Post by **wannabeek** » 09 Oct 2017, 16:29

Well that is actually true.

If the share price drops below 3.60 then you can use your saved fund to purchase shares at that fixed price of 3.60 if you want to.

I think that would be a bit mad though because you could just take the cash pot and do what you like with it... for example buy RM shares on the open market at below 3.60 price if that's what they're trading at.

All hypothetical though, I reckon that by the time we have an option to purchase, all this brouhaha will be resolved one way or another and the share price will be back up to summer level again.

Pongo Waring · Post by **Pongo Waring** » 17 Oct 2017, 17:34

Ive noticed my SAYE contributions of £14.75 stopped about 6 weeks ago and I thought I might have had some contact from RM by now about what happens next but I haven't heard anything yet. I,ll probably buy the shares at 3.60 and just sit on them for a while. Has anyone been written to since the scheme matured ?

Post by **RobertT** » 17 Oct 2017, 18:13

Pongo Waring wrote:Ive noticed my SAYE contributions of £14.75 stopped about 6 weeks ago and I thought I might have had some contact from RM by now about what happens next but I haven't heard anything yet. I,ll probably buy the shares at 3.60 and just sit on them for a while. Has anyone been written to since the scheme matured ?

We will be able to buy shares from 1st December. Equiniti are supposed to be writing to us sometime before then with the info.