Sharesave scheme

Kittenkirst

Hi all, I am not very clued up about shares but my company has a shaesave scheme. The share price is 20% lower for the scheme than it currently is selling at. Reading all the T's & C's it appears that the scheme means even if i decide not to buy the shares after 3yrs i will not loose my money.

Does anyone have experience of these types of schemes?

C_Mababejive

Yes..its a sure fire winner..get in there and get maxed out.

opinions4u

Heads you win. Potentially lots. If your gain is over £10k and you sell the shares check out your Captial Gains Tax liability.

Tails you get your money back. Even then you get six months to sit tight and see if the share price becomes favourable again.

Word of warning. Don't do what somebody on here did and hold on to lots of shares in just one company for a long time. A 98% valuation reduction when the company nearly goes bust isn't pleasant. Diversify.

MoneySaverLog

As the others have said, great scheme and you cannot lose your original investment, and have the potential to make shed loads.

I'm pilling in with the max from this month £250 over 5 years, already share price has gone up so from being £4.96 option price to between £6.40 - £6.50 a share now. Hopefully it will be more in 5 years time. I'll let you do the maths. :-)

Kittenkirst

Excellent! I thought that was the case but thought I'd check!

I can put max in of £250 a month, but can have three running (each started a year after the next) but max of £250 paid into them all a month.

Am kicking myself that I didnt start this sooner as been with company 5 years now! Doh!

One q: if i make under 10k (it will be nowhere near that) do you stull get taxed?

MoneySaverLog

Whatever the capital gains tax threshold is so if you put in £15,000 and shares are worth £25,000 or less when you come to sell them then you can avoid CGT as long as the allowance is more than the 10K gain.

There are ways I believe you can further reduce the tax by not selling them all in the same tax year and using a Stocks and Shares ISA but will look into that if needs be in 5 years time.

Kittenkirst

Thanks again for the advice. Will have another read of the terms tomorrow morning, & then sign up! It nicely fits in with my 3 year plan for a house deposit too :0)

MoneySaverLog

Yes I have a similar plan but mines a 5 year plan for a significant house deposit and ties in rather nicely.

chris_m

Hehe, mine's split between a three-year and a five-year one -the first for paying off the mortgage and the second for early retirement. With option prices of 68p and 61p respectively and a current SP of £2.20 it's looking very nice so far.
Needless to say, I have everything crossed that it carries on that way ;-)

atush

Unfortunately our last 2 did not hit the strike price so we got the money back (plus some interest- ended one early to start a new one with a better strike price) but back into a new one now and this one is looking better.

They really are a win win.

Seany

CGT is a lesser worry on these schemes,

One of our work schemes is the same but only a three year period is offered - we're told that we can pool three years CGT allowance because the scheme is spread over three years.

If you can make £30k on top of the £9k investment then you'd be paying CGT - but in that situation I wouldn't really mind!