tesco save as you earn

katiedog

Hi I work for Tesco and every year have been paying into their SAYE schemes every year. As I dont think the share price will rise above the option price are they worth keeping. Is there any tax disadvantages in closing them? for example. I hope you can help.

thank you.

PeacefulWaters

The main disadvantage of closing them is you miss out on any gains that do happen. Remember, they're a heads you win / tails you get your money back scheme.

I have closed Sharesave schemes in the past. But only to buy in to a new scheme with a more favourable option price.

Minrich

Depending on whether its 3 year or 5 year . A 5 year scheme gives you several free payments rather than you paying them , so a bonus so to speak . Just keep doing them and take the money at maturity rather than the shares , we took the cash last year for instance as the share price was lower than the option price . We took on the full entitlement of £500pm for this coming years scheme we cancelled all other schemes to do so to get the money back and we will use that cash to fund the £500pm we are now committed to . Did you sign up to the scheme this year ?

katiedog

Thanks for the replies. I closed two schemes when the new scheme was announced in November. I then opened the new one with £300 per month and carried on with the 3 oldest schemes with £50 per month each. I hope ive done right, I think I have!

Minrich

katiedog wrote: »

Thanks for the replies. I closed two schemes when the new scheme was announced in November. I then opened the new one with £300 per month and carried on with the 3 oldest schemes with £50 per month each. I hope ive done right, I think I have!

You should have closed them all and taken the cash , then opted for the £1.50 per share option for as much as you could afford up to the £500pm limit . The 3 other ones you have running will be much higher than the £1.50 price ....