What happens to Sharesaves after redundancy

Rufty1

Hello

I have 4 sharesaves open with the company that has recently made me redundant. I was told I would be contacted with advice regarding what would happen with those.
Instead I have a letter saying I have missed contributions (obviously as they came from payroll), but my options are not clear.
It mentions automatically closing the account.
I don't want that but as I can't contribute any more I don't know if there is a choice. The thing is, I was obviously doing this for the tax benefits - but I won't know what the implications are now.
Could anyone give me some advice before I call them (so I am well informed)?

Many thanks!

anna42hmr

i would check the exact terms from when you opened yours, but for the companies i worked for (had two employers who run such schemes) both of which treated me as a "Good leaver" (once when was made redundant and once when my division was taken over / sold off to another company) as such we were allowed to purchase the shares at the discounted price for the amount up to which had saved at that point.

If I recall they also allowed a further 6 contributions as well.

Once the shares option was exercised, i was then allowed to sell them early without the need to pay additional income tax/national insurance - which would normally be payable if they are taken early for other reasons (though they would be considered for capital gains tax though). They also waived the share dealing charge too.

Good lever status for us was things such as redundancy, company being sold off etc.

Westie983

With my share save scheme, if you are made redundant, or contract terminated due to illness, disability, or company taken over, you are able to buy shares at the option price up to the fund balance six months from the date of redundancy or contract end.

The extra six months contributions are paid by DD to the company holding the shares (in my case its Equiniti)...

check your T&C's

Rufty1

Thanks for that tip. The company did not inform the sharesave people and I have only a week to get it sorted before the 6 month deadline - without your prompt I could have lost out.