Sharesave Scheme - Company Sold - Options

Lifes_Grand_Plan

Hi all,

I am a member of my employers sharesave scheme which is being run over 3 years in total and due to end November 2025. However the scheme is with my employers parent company and my employers company has recently been sold by its parent company so we've have been contacted by the sharesave provider with options as we can't remain in the scheme now.

For a long time the share prices dropped so I would have taken the cash back. However recently they've announced some good results and the current share prices is about 10% above the option price. So while it won't make me masses of money as it stands, it'll still be a nice little profit (if it stays where it is). So I'd like to continue contributing to the scheme for as long as I can to maximise the share quantity I have the option on, and therefore maximise the potential profit.

My understanding is that I'm able to do the following:
1. As long as I decide within 6 months of leaving the scheme and let them know, I can still decide to either take my money back, or take the shares.
2. If that's correct, I think I can set up a payment with the scheme provider to continue paying into the scheme, which I'd do until August, and then take the shares or take my money back.

I think all of the above is possible and the best course of action, but if anyone has been through a similar situation and can confirm or suggest any better options please?

Also if I eventually take the option of the shares, i'd like to immediately sell them and move the funds to a S&S ISA in a all world ETF to spread the risk rather than have all eggs in one basket. Will the scheme provider charge me for them to sell the shares on my behalf?

DRS1

Those are your options.  The only issue is what happens to the share price between now and August.

One thing to think about is CGT.  You may not have much gain and so may not be worried about CGT on the sale of the shares but if you are then it is possible to put the shares into an ISA within 90 days of exercise of the option and then sell them within the ISA so no CGT.  There is a thread on that somewhere.

See also
How to transfer SAYE or SIP shares into an ISA | Charles Stanley

There would usually be charges on selling but read the letter you got about your options and see what they say.  Or perhaps the scheme documents say something about special deals for selling the shares after exercise of the option?  But it is not always mentioned as the whole point of the scheme is to encourage employees to become shareholders not to encourage them to sell the shares.

DRS1

Found a thread that may help with the ISA thing

Clarification needed on 90 day SAYE shares to ISA transfer. — MoneySavingExpert Forum