Sharesave (SAYE)

boabbyshaft

Hi there,

Looking for some advice. Over the past 3 years i have put away an agreed amount with the company i work for and at the end of that period i pick up the overall value in shares through this Sharesave (SAYE) scheme.
In November i pick up 425 shares for Yell at £2.60 each ( currently trading at aroung a fiver per share ) through Lloyds TSB registrars. Our company can't explain something to me so hopefully some good soul out there can.
1) From when i take ownership of the shares in November online via Lloyds TSB, can i sell them straight away or do i have to keep them a while?
2)The value will be around 2 grand(ish), once sold do i have to pay any tax on the sold shares, or do i receive the full value of the sold shares?
3) What's the deal with Capital gain's tax and would that apply to me?
4) How much would Lloyds TSB take as commission if any?

If someone out there can help me with this you have no idea how much myself and other would appreciate it.

Many Thanks,

Scott

macca64

Not an expert but hopefully this helps;

1) I beleive you can sell straight away.
2) As the value is only £2k, there is no tax to pay, only charges will be dealing charges.
3) You wont be making a profit over your CGT allowance, so no tax to pay.
4) Charges vary, I'd check with your broker (Lloyds TSB).

boabbyshaft

Really?Wow that it is superb!!

Many Thanks guys.

If anyone else wants to throw in their tuppance worth then feel free!

jonesMUFCforever

Will you be getting a paper certificate or are they held in a nominee acount electronically?
If you will get a paper certificate you will have to wait for this before you can deal.
Agree with all other answers.

someone

they send a letter out and ask do you want to

a) not buy the Share (take the money + pre agreed intrest)
b) buy the Shares and have them sold on date x, x or x (up to them) which y% commison
c) buy the Shares and have a paper certificate sent to you

boabbyshaft

So Someone from what your saying about an agreed selling date the choice is down to lloyds tsb not me?

jonesMUFCforever

boabbyshaft wrote:

So Someone from what your saying about an agreed selling date the choice is down to lloyds tsb not me?

No what the poster is saying is that the registrars have bulk dealing days (normally 2 per week) whereby if you deal using this service they charge a reduced brokerage fee.
Once you have the shares you are free to sell at any time but outside of the bulk dealing days they will charge more.

JohnR

I think an important point to make is that any money you make from selling the shares is free from tax, thats the advantage of the SAYE scheme.

jonesMUFCforever

JohnR wrote:

I think an important point to make is that any money you make from selling the shares is free from tax, thats the advantage of the SAYE scheme.

Sorry but this is incorrect!
Everyone has a capital gains tax excemption (I think about £8900 per tax year) but any gain above this figure is taxable.

Girl_least_likely_to

I'm in the same position as the OP, the only difference is that I will be receiving just under 1000 shares. Are the posters absolutley certain that there will be no tax to pay? I really hope not!!!! Thanks in advance

Twopints

As ejones999 says above, Sharesave schemes are normally not subject to Income Tax (unlike some "unapproved" share options) but may incur Capital Gains Tax (CGT) if the gain, i.e. the difference between the option price and the prices at which the shares are sold exceeds the CGT allowance.

The current CGT allowance (2006/07) is £8800 and applies to any gains made during the 2006/07 tax year. So you can make a "profit" of up to £8800 without having to pay any tax. If your gain is likely to be more than this, then you can try minimise any tax impact by selling some shares in another tax year, or transferring them into your spouse's name before selling them.