Employer SIPS Scheme
My ex employer runs a SIPS (Share Incentive Purchase Scheme). This is where you purchase shares at the prevailing rate from your gross salary and the shares go into trust for x years at which point they are available to liquidate without losing the beneficial tax position.
At the time of joining this scheme, an information leaflet was sent out which outlined what tax conditions occurred if you remained in the scheme and at all the different stages, especially if you left the company before the shares matured.
I left recently and on studying the info it seemed very clear to me that as long as I leave my shares in trust for the requsite time I will not have to pay tax on them and will receive the matching shares etc.
I have recently heard that this may not be the reality and that in fact as soon as you leave the company you must either sell the shares at the current rate and pay tax or transfer them into your own name (and pay tax).
1) The shares are at a lousy price right now
2) I don't feel I should pay the tax as I want to leave them in trust
Does anyone have any familiarity with these schemes who could shed some light on how theirs/they usually operate.
Many thanks,
CDG
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