Cashing in shares in an employee share scheme

[wysiwyg2009]

Hi to all the board members, I've been hearing a lot about the site from other forums, but never bothered joining up until today, because I wondered if someone could give me some advice about a money problem I have.

Basically, like many people today, I am stuck with owning a reasonable amount of assets, but they are "locked up" for the next few years, and I've run into a cash liquidity problem right now i.e. bloody credit card.

Anyways, here's the story..

I've been buying shares for the past number of years in a work share scheme. You buy them, hold them 3 years, and then can sell them again tax free... I'm sure people would have heard about the scheme. Anyways, I have 14k at todays price in them, but ...

1. Can I cash them all in, and will the tax be payable at 41% on all of them, or is there some kind of clawback formula where the tax payable is decreasing year by year for the 3 years ?

and 2.

My other half has a Royal Liver Savings policy, that will mature in 2013. So far they are saying that she is assured 12,5 K when it does. Do these kinds of policys have "surrender values" ?

Its all a pain in the backside really... I could remortgage to get over the hump, but I am on a good tracker and the payments are dropping like a stone for the last few months. It's just a stupidly used credit card which has built up 13K, and is costing 300 a month in interest.

Any advice please ?

 

[Berni]

1. Can I cash them all in, and will the tax be payable at 41% on all of them, or is there some kind of clawback formula where the tax payable is decreasing year by year for the 3 years ?

The shares cannot be sold in the first two years, and if sold between years two and three, you are liable for the full 41% tax.

 

[colm5]

Hi, on the employee share scheme, there is claw back, and the scheme managers will be able to tell you straight away what that is. I am pretty sure its full clawback, but could be incorrect on that, I was in a scheme like that years ago.

Also, you cannot sell them tax free, you pay CGT on the profit made.

 

[wysiwyg2009]

that sounds about right.. but its a pain in the backside, I need short term cash fast, and I have about 5 grand tied up in shares that would be coming out in June and December i.e. I have held them for 2 yrs and 3 months and 2 yrs and 9 months, but you're saying I will get hit for the whole 41%

Damn!!!!

 

[Frank Grimes]

Switch your credit card balance to another Credit card provider offering the 6 months interest free on balance transfers and puchases. Should just about tide you over...