Transferring shares from SIP to RMNSS.

[onejontwo]

Has anybody had experience of Royal Mail Nominee Share Service ie. RMNSS. As I have to sell or transfer my shares from SIP because of retirement, I am inclined to keep hold of them at the moment due to the increase in value, the chance of dividends and hopefully a further increase in value. I can presently keep an eye on my shares through RM portal, and it seems fairly straightforward to sell them when the time comes. Are there any major differences between the two schemes ie. charges, monitoring my shares etc. I believe I shouldn't be liable for NI and income tax, and Capital Gains Tax shouldn't be a problem.

[solar_plexus]

Equiniti will by default sell your shares when you leave the company. If you wish to transfer them you have to instruct them to do so. There is no income tax or NI payable if the reason for leaving is retirement.

The nominee service is basically a share dealing platform. The SIP is like an ISA, it shields the gains from the taxman. In terms of operation, the SIP and nominee service work in the same way when selling shares.

You do not have to use RMNSS to hold your shares, they can be transferred to any share dealing account. The value of your shares will be calculated based on the closing price on the date of the transfer; when the shares are subsequently sold any gain (or loss) will be based on this value for calculating your capital gains tax liability. This can be avoided by transferring the shares to an ISA.

[Alexei]

Equiniti will by default sell your shares when you leave the company. If you wish to transfer them you have to instruct them to do so. There is no income tax or NI payable if the reason for leaving is retirement.

Wow, I did not know this. A colleague is resigning this week who has kept their free shares in the SIP - I'll need to pass on this information asap. Quite shocking actually that they would sell shares without prior consultation.

[Biker Mouse]

Equiniti will by default sell your shares when you leave the company. If you wish to transfer them you have to instruct them to do so. There is no income tax or NI payable if the reason for leaving is retirement.

Wow, I did not know this. A colleague is resigning this week who has kept their free shares in the SIP - I'll need to pass on this information asap. Quite shocking actually that they would sell shares without prior consultation.

You are contacted by RM asking what you want to do with your shares, they do not automatically sell them!

[onejontwo]

In fact the opposite is true in that if you do not contact Equiniti within a certain time frame after leaving Royal Mail, then the trustee will TRANSFER all of your shares to the Royal Mail Nominee Share Service and not sold as indicated by solar plexus. So basically if you do not want to sell your shares after leaving you can request a form or just do nothing and they will be transferred by default.

[solar_plexus]

Taken from the Equiniti portal: SIP Summary FAQs

I have left Royal Mail. What do I do now in respect of my Share Incentive Plan (SIP) holding?

If you have left Royal Mail you will no longer be able to participate in the SIP and your shares will need to be withdrawn from it, unless you have held your shares for less than three years, in which case you may forfeit them (See question ‘What happens to my (SIP) shares if I leave Royal Mail?’). Once Royal Mail has notified Equiniti of the termination of your employment with them, you will receive a letter explaining the choices available to you regarding withdrawing your shares from the SIP. You must respond to the letter within 30 days from the date the letter is sent to you. If you do not respond within this time, your shares will be sold and the net proceeds will be returned to you or via your payroll after deduction of any income tax and National Insurance which may be due.

https://www.esp-portal.com/1/EPortal/rm ... mmary.aspx
(Need to be logged into the Equiniti portal)

[onejontwo]

I have just received the letter and it states:- If this form is not received by Equiniti Limited on or before 19 March 2021, the trustee will arrange to transfer all of the shares to the Royal Mail Nominee Share Service in accordance with the Terms and Conditions available at www.shareview.co.uk/info/csn.
So unless it was different in the past it seems they now transfer them rather than selling them.