Selling before 5 years-SIP related Question
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Usherbhai
Posts: 2 Newbie
Hello everyone,,
Workplace SIP and selling before 3 years / 5 years
Hi wondering if anyone can help and has experience with share incentive plans and selling before 5 years.
I’m early in my career with the company and have been doing share save and SIP since late 2017. I don’t have any intention to sell the shares anytime soon but just if I do need the money - or feel I need to leave the company I’d like to know my options.
I just cannot seem to understand what happens when I sell before 5 years.
So an example:
So was looking at my wage from September 2017 - did full £600 - but only paid £415 as that was the difference between the September wage and August wage.
That gave me 312 partnership shares and in October 2020 I get another 312 shares for free (matched shares)
So when I try to sell those 312 shares now - it tells me 312 matched shares will be forfeited. Then I sell the 312 - it’s £517 (share price has gone down a bit since then) but I pay £15 commission then £10 NI and £224 income tax so I only get back £268
I know the share price has gone down and there is the commission fee but can’t understand why I get back a lot less than I initially paid.
So initially I saved myself approximately 30 % and got shares worth £600. However I now try to sell those same shares and I could half the value back after tax, ni and fees. Obviously the answer is to just don’t sell them whatever I do until October 2022 but sadly can’t guarantee I’ll still be working there by then.
Anyone able to explain the difference from when I bought the shares to selling before the 5 years?
Workplace SIP and selling before 3 years / 5 years
Hi wondering if anyone can help and has experience with share incentive plans and selling before 5 years.
I’m early in my career with the company and have been doing share save and SIP since late 2017. I don’t have any intention to sell the shares anytime soon but just if I do need the money - or feel I need to leave the company I’d like to know my options.
I just cannot seem to understand what happens when I sell before 5 years.
So an example:
So was looking at my wage from September 2017 - did full £600 - but only paid £415 as that was the difference between the September wage and August wage.
That gave me 312 partnership shares and in October 2020 I get another 312 shares for free (matched shares)
So when I try to sell those 312 shares now - it tells me 312 matched shares will be forfeited. Then I sell the 312 - it’s £517 (share price has gone down a bit since then) but I pay £15 commission then £10 NI and £224 income tax so I only get back £268
I know the share price has gone down and there is the commission fee but can’t understand why I get back a lot less than I initially paid.
So initially I saved myself approximately 30 % and got shares worth £600. However I now try to sell those same shares and I could half the value back after tax, ni and fees. Obviously the answer is to just don’t sell them whatever I do until October 2022 but sadly can’t guarantee I’ll still be working there by then.
Anyone able to explain the difference from when I bought the shares to selling before the 5 years?
0
Comments
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Have a look at the provider - it should be via a SIP company.
Whilst I don’t have the answer off the top of my head, I know our scheme has a very detaile FAQ section - have you looked at this?0 -
Isn't the answer the same as when you last asked the question?.0
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