The wait is over! Your Aviva Save As You Earn plan is maturing. Find out more about your exciting options enclosed - Computershare
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The wait is over! Your Aviva Save As You Earn plan is maturing. Find out more about your exciting options enclosed. Remember you have 6 months from your maturity date to place an instruction. Please note that this communication and its content is for information only. It does not constitute personal, financial or tax advice.
“ Dear Colleague,
Thank you for taking part in the Aviva Save As You Earn (Aviva SAYE) plan – and
backing the success of our company. Together we have transformed Aviva since
the start of your savings contract and we are now delivering consistent, stable and
transformed Aviva
“
Together we have predictable growth despite challenging market conditions. It’s thanks to your hard
work that we can deliver on our promises to our shareholders and customers.
Introduction
But we still have much to do to unlock Aviva’s potential, especially as we continue to
transform into a truly digital business. We must live our Aviva values – create legacy, Your choices
never rest, kill complexity and care more - to guide us and help us succeed.
Now your plan has come to maturity, you can decide what to do with your savings Making your choice
and any applicable bonus. Our Share Schemes Team has compiled this brochure to
help you make that decision, containing information on how to use your savings to
buy and keep or sell your shares in Aviva. Key dates
It also provides details of how to make the most of your savings – and how you can
build your stake in Aviva through the Matching Share Plan. Maturity calculator
So please take the time to read it so you are well prepared to make the decision that
is best for you.
Our share price
Once you have made your decision, please make your election online. You have 6
months from your maturity date in which to exercise your Option and buy Aviva
shares at the plan Option Price. After the 6 month period, your opportunity to buy FAQ’s
Aviva shares at the Option Price will lapse. If you have any further queries, please
contact Computershare.
Matching Share Plan
Thank you once more for your efforts. Let’s keep working together to reach our full
potential, delighting our customers and reinventing the industry for the digital age.
Yours sincerely, Vested Share Account (VSA)
Financial and tax
Mark Wilson
Aviva Investment Products
Group Chief Executive Officer
Contact Computershare
Menu
Your choices
1. Buy Aviva shares at the Option Price and keep them - becoming an
owner of our company
2. Buy Aviva shares at the Option Price and sell your shares
3. Take your savings as cash Introduction
You have 6 months from your maturity date to decide what to do with your savings.
Your choices
Plan Year Option Price Bonus Rate
Making your choice
2014 (3 year) £4.19 -
2012 (5 year) £2.66 - Key dates
2010 (7 year) £3.10 4.9
Maturity calculator
You can find the current Aviva share price here.
Our share price
When can I make my choice?
You can choose what you would like to do with your savings from the date your FAQ’s
plan finishes – this is known as the ‘maturity date’. In most cases your maturity date
will be 1 December 2017. If you have deferred a payment, your maturity date will
Matching Share Plan
have been delayed by one month for each deferred payment. You can find your
maturity date in your maturity email or letter.
Vested Share Account (VSA)
Remember, your Option to buy shares at the Option Price will lapse 6
months from your maturity date. If you have left the company before reaching
your maturity date you will have 6 months from your leaving date. Financial and tax
Aviva Investment Products
Contact Computershare
Menu
Choice 1 - Buy Aviva shares at the Option Price and
keep them - becoming an owner of our company
Your savings will be used to buy Aviva shares at the Option Price. Your shares can either be:
• transferred to an online Vested Share Account (VSA)
OR
Introduction
• issued to you as a share certificate in your name
No fees or tax will be deducted when buying shares at the Option Price.
Your choices
What is an online VSA?
The VSA (or Vested Share Account) is a nominee share account managed by Making your choice
Computershare. You can manage the VSA account online through the Aviva Share Plans
website. The shares are held electronically by Computershare on your behalf, instead of
you holding a share certificate. More information about the VSA Key dates
What should I consider?
If you decide to buy Aviva shares, there are additional options you could consider such as: Maturity calculator
• Transferring your shares into an ISA, which has certain tax advantages. Please
read our ‘Saving for your future’ guide for further information Our share price
• Researching the Aviva share price. Our Investor Relations Director, Chris
Esson has provided a summary of the Aviva share price which you may find of
interest. You can also visit: www.aviva.com/shareholderservices where you will find FAQ’s
information on dividends, the Company’s Annual General Meeting, useful Q&As,
and details of how you can manage your shareholding online
Matching Share Plan
Click here for details of how to make this choice
Vested Share Account (VSA)
Financial and tax
Aviva Investment Products
Contact Computershare
Show choices summary
Menu
Choice 2 - Buy Aviva shares at the Option Price and
sell your shares
Your savings will be used to buy Aviva shares at the Option Price. You can then sell them
immediately at market value using Computershare’s “real time” dealing facility.
How will I receive my sale proceeds?
You can choose the bank account you wish the proceeds to be paid into. You should
expect to receive your proceeds within 5 working days from the date on which your shares Introduction
are sold.
What should I consider? Your choices
What could I do with the sale proceeds?
At Aviva we encourage all of our employees to save for their future. Please read our Making your choice
‘Saving for your future’ section for further information.
Important information Key dates
Please ensure you read the Computershare Online SAYE Exercise and Share Dealing
Terms and Conditions before submitting your instruction. You can also find some useful
information under the FAQs section of this brochure.
Maturity calculator
If you do not sell all of your exercised shares, you can choose to transfer your remaining
shares into the VSA or receive a share certificate. If you wish to use an alternative Our share price
broker in the future, you should elect to receive a share certificate.
If you submit your instruction during London Stock Exchange (LSE) opening hours, FAQ’s
your shares will be sold immediately. The price shown on the site will be up to a 20
minute delayed price, so you may not receive the exact price shown. If you sell outside
of LSE hours, your shares will be sold when the LSE next opens. Further information Matching Share Plan
can be found in the FAQs section under ‘When will my dealing instruction be placed?’
Charges:
Vested Share Account (VSA)
A dealing charge of 0.35% will apply to the sale of your shares, subject to a
minimum fee of £20.
Financial and tax
Click here for details of how to make this choice
Aviva Investment Products
Contact Computershare
Show choices summary
Menu
Choice 3 - Take your savings as cash
You can close your account and have your savings returned to you in full. If you have a 2012
or 2014 SAYE the cash will be paid directly into your chosen bank account by Computershare
within 5 working days of your account being closed. If you have a 2010 SAYE, a cheque will be
issued by Equiniti within 10 working days of your account being closed.
What should I consider?
Introduction
What could I do with the proceeds?
At Aviva we encourage all of our employees to save for their future. Please
read our ‘Saving for your future’ section for further information. Your choices
Important information
Even if you take your cash back, you can still exercise your Option to buy Aviva shares during
Making your choice
the 6 month period following the maturity of your Aviva SAYE plan.
In this event, you will need to return your full savings to Computershare. Once your account is Key dates
reinstated, you can exercise your Option, and sell your shares.
Your Option to buy shares at the Option Price will lapse if you do not make an election within Maturity calculator
6 months of your maturity date.
Click here for details of how to make this choice
Our share price
FAQ’s
Matching Share Plan
Vested Share Account (VSA)
Financial and tax
Aviva Investment Products
Contact Computershare
Show choices summary
MenuMaking your choice
To make your choice:
1. Log into the Aviva Share Plans website:
saye.at.aviva.com/avivashareplans
Introduction
You will need your Shareholder Reference Number (SRN) provided on your
maturity communication, and your Personal Identification Number (PIN). If
Your choices
you have forgotten your PIN, please click on the ’Forgotten PIN’ link where
you can choose to have the PIN sent either by email or to your home
address. If you haven’t logged into the site before and confirmed your Making your choice
correct email address, you are advised to have this sent to your home
address. Key dates
2. Click on the ‘SAYE Maturity’ button which can be found Maturity calculator
on the right hand side of the home page, then click on the
‘Maturity’ link next to your matured savings contract and Our share price
follow the onscreen instructions.
Please note that once a valid instruction has been received by FAQ’s
Computershare, they will be obliged to process your instruction,
even if the Aviva share price falls below the Option Price. Matching Share Plan
Vested Share Account (VSA)
Financial and tax
Aviva Investment Products
Contact Computershare
MenuKey Dates
Introduction
01 Maturity date
Dec 2017 Your choices
Making your choice
Key dates
31 Last date for exercise
May 2018 Maturity calculator
Our share price
FAQ’s
Option to buy shares at the
01
Jun 2018 Option Price lapses Matching Share Plan
Vested Share Account (VSA)
Financial and tax
The above dates assume that you have not deferred any
payments. Your maturity date will be shown on your
Aviva Investment Products
email or letter. The date your Options lapse will be 6
months from your maturity date.
Contact Computershare
MenuMaturity Calculator Reset Form
Please select your contract term:
3 Year (36 months - Option Price £4.19)
If you have a 3 year term contract there is no bonus payable on maturity.
5 Year (60 months - Option Price £2.66)
If you have a 5 year term contract there is no bonus payable on maturity. Introduction
7 Year (60 months - Option Price £3.10)
Your choices
If you have a 7 year term contract you will be paid a bonus equivalent to 4.9 times your monthly savings amount on the maturity date.
Making your choice
Enter savings amount: £ 0.00 This is the amount of money you had deducted from your pay each month.
Key dates
Number of shares: 0 This is the total number of shares that you can buy with your total savings.
Maturity calculator
If you do not sell all of your exercised shares you can choose to transfer the balance of
Shares you wish to sell: 0 your shares to the VSA or receive a share certificate. Our share price
This is the price you expect Aviva shares to be worth on the London Stock Exchange on
Enter expected sale price: £ 0.00 the date you exercise your option to buy and sell them. FAQ’s
This is the value of your shares before dealing commission is deducted. Matching Share Plan
Estimated gross value: £ 0.00
Please note that a minimum charge of £20 will be applied to the sale of shares.
This is the dealing commission you will be charged for selling your shares on the London Vested Share Account (VSA)
Commission charged: £ 20.00
Stock Exchange.
Financial and tax
Estimated net value: £ 0.00
Aviva Investment Products
Please note that the net value of the shares sold may be subject to tax. For more information about tax and what you can do to
minimise tax on your shares, read our Financial and tax information. If you are unsure of what to do with your sale proceeds, please Contact Computershare
read the Aviva Investment Products page to see how you can further re-invest your money.
Menu“
Our share price
£5.50
£4.0
Aviva’s strength is in
its people, our focus on Introduction
digital and our collective
£2.50
£1.0
“
drive to win in our
chosen markets
Your choices
1/01/09 1/01/10 1/01/11 1/01/12 1/01/13 1/01/14 1/01/15 1/01/16 1/01/17 Making your choice
Key dates
In recent years Aviva has simplified its business, secured our balance sheet, and is
delivering cash flow plus growth. Our innovation in the digital space sets us apart from
our peers, and we are well positioned to win in our chosen markets. Maturity calculator
After a strong start to 2017, it has been disappointing to see the share price give Our share price
back some of its gains in the second half. The apparent lack of progress with Brexit
negotiations have prompted renewed concerns among some investors about the
FAQ’s
economic outlook for the UK. While this is weighing on sentiment in the short-term, we
remain confident that our surplus capital position and track record of delivering strong
results and growing dividends provide an attractive proposition for investors. Matching Share Plan
Aviva’s strength is in its people, our focus on digital and our collective drive to win in Vested Share Account (VSA)
our chosen markets. So long as we continue to deliver I am confident that we will be
successful in the future.
Financial and tax
Chris Esson
Group Investor Relations Director
Aviva Investment Products
Contact Computershare
MenuFAQs
What happens if I don’t take any action? Will I have to pay any tax or will any charges be applied close of Stock Exchange Trading Hours will be treated as having
If you don’t take any action, your option to buy shares at when buying shares at the Option Price? been received at the opening of Stock Exchange Trading Hours
the Option Price will automatically lapse 6 months from your No fees or tax will be payable when buying shares at the Option on the next Stock Exchange Trading Day.
maturity date and you will need to contact Computershare to Price. Be aware that you may be subject to Capital Gains Tax
when selling your shares in the future; please see the If your account matures on 1 December 2017, there will be
close your account and have your funds returned to you via a final processing date on 31 May 2018 and your instruction
BACS or by cheque. Tax Information page for more details.
must be received by 4.30pm on the final processing date.
Buying & Keeping Shares Buying & Selling Shares If your original savings contract has been extended to Introduction
complete previously missed payments, your valid instruction
How do I transfer shares to my spouse/civil partner? How do I sell my shares in the future? must be received by 4.30pm on the business day prior to
When submitting your instruction to exercise, you will need to If you choose to receive a share certificate, you can sell your your Option lapsing. If your instruction is received by us Your choices
select that you wish to receive a share certificate if you want to shares using any certificated share dealing service. Most high during Stock Exchange Trading Hours and we accept such
transfer shares to a spouse/civil partner. You may transfer shares street banks offer share dealing facilities. If you decide to instruction to sell, we will aim to exercise your Option and
to a spouse/civil partner once your share certificate has been transfer your shares into the VSA, please ensure you read the instruct the Broker to execute the sale of your resultant Making your choice
received. Please contact Computershare for more details on how VSA information page. shares on your behalf on that Stock Exchange Trading Day.
to arrange a share transfer. Can I choose to sell some of my shares and keep the rest? Instructions which are received after the close of Stock
Exchange Trading Hours will be treated as having been Key dates
How long will it take to get my share certificate? Yes, you can choose to sell a specific number of shares. If you do
You will receive your share certificate within 10 days of not sell all of your exercised shares you can choose to transfer received at the opening of Stock Exchange Trading Hours
submitting your instruction to Computershare. You may wish to the balance of your shares to the VSA (which will appear in your on the next Stock Exchange Trading Day.
Maturity calculator
consider transferring your shares into the VSA, which means you VSA account the following day) or receive a share certificate.
do not have to wait to receive a share certificate or risk losing it. Please allow up to 10 days to receive your share certificate. Taking Savings As Cash
What will happen to any residual amount left over from What if the share price falls after I have submitted my Do I have to pay UK Tax? Our share price
the purchase? instruction? There is no UK income tax or National Insurance
If you choose to purchase shares at the Option Price, there may The price shown on the site when you submit your instruction Contribution payable on the repayment of your savings,
be a small amount of cash leftover that cannot be used to buy (which is irrevocable once submitted) will be a 20 minute nor on the exercise of your Option at maturity. FAQ’s
a whole share. This residual cash balance will be donated to delayed price and you may not receive the exact price shown.
Aviva’s nominated charity, currently The British Red Cross. If you What happens if I leave the Company before or
If you sell outside of London Stock Exchange (LSE) hours, your
do not wish to donate your residual cash balance, which will be after my contract reaches maturity? Matching Share Plan
shares will be sold when the LSE next opens. Share prices can
less than the Option Price, to charity you can select to receive a If you leave the Company before or after your contract
go down as well as up and you should always check the current
cheque for this amount. Computershare will send this within 10 reaches maturity, you will need to refer to your leaver
share price before making a decision. If you are unsure, you
pack, which Computershare will send to you within Vested Share Account (VSA)
working days of your instruction being received. should seek independent professional advice.
6 weeks of your leaving date. If you have not yet
Can I exercise my Option and buy some shares and take When will my dealing instruction be placed? received a leaver pack from Computershare, please
the rest as cash? Your dealing will be placed in line with the following contact Computershare. Financial and tax
No. You only have the option to use all of your savings (and Computershare Exercise and Processing Terms and Conditions:
tax-free bonus if applicable) to purchase all of the Aviva shares You will have 6 months from your maturity date or
granted to you. If your instruction is received by us during Stock Exchange leaving date, whichever is sooner, to exercise your Aviva Investment Products
Trading Hours and we accept such instruction to sell, we will Option and buy Aviva shares at the Option Price. In
aim to exercise your Option and instruct the Broker to execute order for your contract to mature you will need to
the sale of your resultant Shares on your behalf on that Stock make up any outstanding payments; please refer to Contact Computershare
Exchange Trading Day. Instructions which are received after the your leaver pack for instructions on how to do this.
MenuThe Aviva Matching Share Plan (Aviva MSP) Matching Share Plan vs. Save As You Earn
The Aviva MSP is another Aviva share plan which enables you to become
A
viva employees can choose to invest in the Aviva MSP, SAYE or both. But what are the main
an owner in the Company.
features and differences between the plans?
The Aviva MSP is currently only available to employees in the UK only.
Key features
• Contribute between £5 and £150 a month, straight from your Matching Share Plan (MSP) Save As You Earn (SAYE)
pre-tax and NIC pay
• Your monthly contributions are used to buy Aviva shares (called Flexibility You can start, stop or change the monthly The amount you save is fixed. Annual Introduction
Partnership Shares) amount you invest at any time invitation window to join
• Aviva will award two Matching Shares for every Partnership Contributions Invest between £5 and £150 per month Invest between £5 and £500 per month Your choices
Share bought with the first £5 to £40 you invest each month
What you buy Partnership Shares at the market price Option Price fixed at the start @ 20% discount
• Both the Partnership Shares and the Matching Shares are each month Aviva will match 2 free shares at the time of invitation. You can choose to
Making your choice
held in a trust for your benefit for every 1 share purchased up to the first purchase shares at the Option Price at the
£40 you contribute each month end of the saving period
Key benefits of the Aviva MSP Your pay Contributions deducted via payroll from Contributions deducted via payroll from Key dates
gross pay (before Income Tax and net pay (after Income Tax and NICs
• Become an owner in the Company immediately NICs are deducted) are deducted)
• Get three shares for the price of one on the first £40 you invest Maturity calculator
Shareholder Become a shareholder right away and You might not become a shareholder.
• Receive any dividend declared by Aviva on ordinary shares rights receive dividends on your shares After 3 or 5 years you have the choice
• Start, stop or amend your contributions at any time to buy shares or take your cash savings Matching Share Plan
• Sell your Partnership Shares at any time (although you would
Leaving* If you leave within 3 years, your shares If you leave before the end of your
lose your Matching Shares if you sell your Partnership FAQ’s
held in the plan will be released to you, 3 or 5 year savings contract,
Shares within three years of the purchase date) subject to Income Tax and NICs you get your savings back
• Pay no UK tax or NIC on shares held in the trust for at Matching Share Plan
least 5 years Tax If you keep your Partnership Shares and If you choose to exercise your Options
Matching Shares for 5 years (or 3 years for and buy shares, there is potential
• You can join the plan at any time Dividend Shares), any sale is free of Income Income Tax liability on any future Vested Share Account (VSA)
• If you decide to leave the Company, you will still retain Tax and NIC. There is no Capital Gains Tax dividends and potential Capital
your shares. However, you may be subject to tax (CGT) payable when you withdraw shares Gains Tax (CGT) liability on any
dependent on how long they have been held in the trust from the plan - your CGT base price is the future sale of your shares Financial and tax
price when the shares are withdrawn
For more information about the Aviva MSP, visit: Holding You must keep your Partnership Shares for If you choose to exercise your Aviva Investment Products
period 3 years in order to keep your Options and buy shares, you
Matching & Dividend shares (whilst you can sell them at any time
saye.at.aviva.com/avivashareplans remain employed) Contact Computershare
*Leaving due to redundancy or retirement (or any other reason stated within the Plan rules), mean that
different options will be made available to you. Please see the FAQs on the Aviva Share Plans site for full details.
Please note that this plan is not available to Solus employees. MenuThe Vested Share Account (VSA)
If you decide to purchase Aviva shares at the end of your SAYE plan, they can be held in VSA – Questions and Answers
Computershare’s VSA (Vested Share Account).
If I transfer my Shares to the VSA, what happens to any dividends payable?
What is the VSA? Dividends received on shares held in the VSA will be used to purchase further shares and
added to your VSA account. A dealing charge of 0.75% is payable on the share purchase.
The VSA is a share account managed by Computershare. The shares are held electronically by
Computershare on your behalf - instead of you holding a share certificate (this is known as a What shares can I transfer into the VSA?
nominee account). You can access your shares held in the VSA through the Aviva Share Plans You can transfer any shares purchased by exercising an Option through the Aviva SAYE
website. plan into the VSA. You cannot normally transfer any other shares. Introduction
What are the benefits of the VSA? How can I check how many shares I hold in the VSA?
VSA shareholdings, along with other share plan holdings, can be viewed at any time on Your choices
• Free to hold shares the Aviva Share Plans website under ‘Vested Share Account’ on the ‘Portfolio’ page.
• Easy to manage online – view valuations and place deals with the click of a button Making your choice
What are the dealing charges applied when selling shares or transferring shares
• Trade securely and instantly using the ‘Real Time’ dealing facility. You can also place ‘Limit out of the VSA?
Orders’ (where you set the minimum price at which you are willing to sell your shares) There is no charge for holding shares in the VSA or for transferring your shares out of
the VSA and into your own name. For each sale of shares, Computershare will charge a Key dates
• No share certificates to worry about – replacing a lost certificate can be costly and time
dealing fee of 0.35% with a minimum fee of £20. Should you ask for the proceeds to
consuming
be wired to a non-UK bank account, there would be an additional £15 fee.
• You still have full rights to receive dividends and to vote on resolutions put to shareholders Maturity calculator
at general meetings, as you remain the beneficial owner of the shares Is there a minimum period that shares have to be held in the VSA?
No. There is no minimum (or maximum) holding period. You are free to sell or transfer
your shares at any time (subject to any restrictions placed on you if you are on an
Our share price
Aviva insider list).
FAQ’s
This document contains information regarding the VSA but
you are advised to read the VSA terms and conditions which Matching Share Plan
can be found under ‘Plan documentation’ on the Aviva Share Plans
website.
Vested Share Account (VSA)
Financial and tax
Aviva Investment Products
Contact Computershare
MenuUK Tax and Financial Information
The Aviva SAYE plan is an HMRC tax-advantaged plan, therefore if you exercise your Option to buy Aviva
shares, no UK Income Tax or National Insurance Contributions (NIC) are usually payable.
There are other potential tax and financial impacts that you should be aware of.
Capital Gains Tax (CGT)
CGT is a tax on the profit or gain you make when you sell or otherwise ‘dispose of’ a chargeable
asset, such as shares, which were not taxed as income. If you decide to exercise your Option to
buy shares at the Option Price through your Aviva SAYE plan, when you come to sell your shares, Introduction
any gain you have made (from the point of purchase) is chargeable to CGT.
Almost, every individual (other than those who have applied to be taxed on the remittance basis) Your choices
is allowed a capital gains annual exemption (currently £11,300 for the 2017/18 tax year). This
means that if your gain on all chargeable assets sold (and any disposals made) in the tax year
(6 April to 5 April) is less than this annual exempt amount, no CGT will be payable. Making your choice
If the gain on the sale of your shares (and any disposals made) will take you above this
exemption, there may be other reliefs and ways in which you can minimise your CGT liability
and which HMRC accepts constitutes legitimate tax planning. Key dates
ISAs - tax efficient investing
Maturity calculator
Whether you decided to buy shares, or take the cash from your Aviva SAYE – you might wish
to consider transferring your cash or shares into an ISA – this could have tax benefits.
More information Our share price
Transfer to Spouse/ Civil Partner
The transfer of shares to spouses or civil partners is exempt from CGT at the time of transfer, FAQ’s
although the spouse may be liable to CGT when they dispose of the shares. As almost every
individual is allowed an annual CGT exemption, this can help to eliminate or significantly
reduce the tax otherwise payable. See the UK SAYE Tax Efficient Example for an illustration Matching Share Plan
of how this can be practically applied.
Pension Contribution
Vested Share Account (VSA)
As an existing member of staff, you may wish to use some of your SAYE maturity savings
to make an additional contribution to your staff pension.
Employee contributions can be changed at any time through MyAviva Flex. The company Financial and tax
will provide a matching contribution of at least 1% (depending upon your current
contribution level).
Aviva Investment Products
Click here for the matching contributions for heritage Aviva colleagues and here for
heritage Friends Life colleagues.
Contact Computershare
More
Info
MenuPension Contribution cont’d... UK SAYE Tax Efficient Example
Mr Smith has been saving £250 per month for 5 years (60 months), with an option in ABC
By using MyAviva Flex, tax relief will also be given at your marginal tax rate. As with any plc at an Option Price of £3.00, which he will be allowed to exercise after a set period. The
pension planning, you are responsible for the amount being paid and any subsequent tax share price on exercise is £5.00 and he later sells the shares for £7 per share.
or annual allowance liabilities. We recommend that you consider these before making a
payment. Savings to shares calculation:
Total Savings (£250 x 60) = £15,000
If you would like financial advice you should speak to an Independent Financial Adviser
Total Shares available from Option (£15,000 / £3.00) = 5,000 shares
(IFA). To find an IFA in your area you can contact IFA Promotion Ltd by visiting its website at
www.unbiased.co.uk. Scenario A Scenario B
No Tax Planning Tax Planning
Limits on tax relief - annual allowance amount Introduction
Number of Shares 5,000 shares 5,000 shares
Tax year Annual allowance Shares transferred to a ISA:
4,000 shares
£20,000 Stocks and Shares ISA = 4,000 (£20,000 / £5.00) Your choices
2017-18 £40,000*
Transfer half of remaining shares to Mrs Smith 500 shares
What is the Annual Allowance (AA)? Shares remaining in Mr Smith’s name 5,000 shares 500 shares Making your choice
The AA is the maximum amount of pension contributions you and your Employer can make
CGT Calculation
in any one tax year, without a charge applying subject to the conditions below. The AA
charge is applied to the amount over the AA and is charged at your highest marginal rate. Proceeds if non-ISA shares sold at £7.00 per share
£35,000
£7,000 (1,000 non Key dates
(see scenario B below) ISA shares sold)
What is the current AA? Proceeds if shares sold in ISA at £7.00 (Free of CGT) £28,000
The current AA is £40,000 but could be less if: Maturity calculator
Total proceeds £35,000 £35,000
• you have already started to access any money purchase schemes flexibly when your AA
Less cost of shares (5,000 x £3) (£15,000)
will be replaced with the Money Purchase Annual Allowance (MPAA) of £4,000: or Our share price
(1,000 x £3) (Non ISA shares for CGT calculation (£3,000)
• your ‘adjusted income’ (broadly your total taxable earnings plus all pension input and
certain other taxable income) is more than £150,000 a year, your AA will reduce from £4,000
Gain liable to CGT from shares sold £20,000
£40,000 by £1 for every £2 of income, ultimately reaching £10,000 if your adjusted (£7,000 - £3,000) FAQ’s
income is £210,000. Less Annual Exemption (Mr and Mrs Smith in Scenario B) (£11,300) (£22,600)
Subject to certain anti-avoidance rules, you would not be liable to this tapering if your Net gain liable to CGT (All shares sold) £8,700 £Nil Matching Share Plan
statutory income (i.e. excluding employer pension contributions) is less than £110,000.
Scenario A – CGT is charged at 10% or 20% depending on the total amount of Mr
*Money purchase pension pots under £10,000 taken through the small pots rules are exempt.
Smith’s taxable income. Vested Share Account (VSA)
What about unused AA? Scenario B – The shares transferred to an ISA and to Mrs Smith can be sold at the same
You can carry forward any unused AA for up to three years. If you’re new to the Scheme, time, obtaining the same price, to raise the same total proceeds as Scenario A. In this
think about the other pension savings you may have made with your previous employer or scenario, no CGT will be payable as the ISA sale will be free of CGT and the proceeds from Financial and tax
in a personal pension scheme. both sales will be less than the respective seller’s Annual Exemption. You should note that
this approach would fully utilise Mr Smith’s entitlement to invest in an ISA in that tax year.
Where can I find out more? As a CGT “shelter”, capital losses made in an ISA cannot be offset against chargeable Aviva Investment Products
capital gains.
You can find out about the different ways the changes on AA could affect you, depending
on your earnings, at www.gov.uk/tax-on-your-private-pension/annual-allowance Disclaimer:
These notes are intended as a general guide to the subject matter and are not intended to provide or Contact Computershare
constitute financial or tax advice. If you have any concerns about the extent to which these notes apply to you,
professional advice should be sought. These notes apply to persons who are UK resident and domiciled and
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relate to UK taxes only and may differ for other persons and jurisdictions.Saving for your future
MoneyWorks
We are delighted to announce the launch of a new employee benefit to help you take I might buy Aviva shares at the Option Price and sell my shares
positive steps towards both understanding and improving your financial well-being. The
MoneyWorks portal provides lots of helpful information and articles as well as useful links or
and downloads to help you make informed decisions and actions in respect of the financial
health of you and your loved ones. I might take my savings as cash
MoneyWorks is available whenever you need it and can be accessed from work, home or on
the go. Visit the MoneyWorks site today at www.avivamoneyworks.com to learn how you
What could I consider?
5
Dis0%
Introduction
can continue to manage your financial health. Continue saving for your future with Aviva investment products co unt
If you are considering either of these choices you might need ideas of
I might buy Aviva shares at maturity Your choices
how you could use your sale proceeds to continue saving for your future.
What could I consider? Our online investment platform is specially designed for easy online use, and
enables you to invest in a wide range of funds. What’s more, as a member of staff, you Making your choice
Individual Savings Accounts (ISA)
get 50% off the Aviva platform charge.
If you choose to exercise your Option to buy shares, you can transfer the shares into a
Stocks & Shares ISA. Once held in the ISA wrapper, your shares will be: What are funds? Key dates
Put simply, an investment fund pools lots of people’s money together, with the intention
• Free from any CGT on share price increase when you sell them; and
of making it grow. A fund is split into units and this is what your investment in a
• Any interest or dividends will be free of any further income tax charge fund buys. Maturity calculator
UK resident taxpayers can subscribe up to £20,000 (for the 2017/18 tax year) per annum A fund manager uses the money from investors to buy assets. Assets are investments like
into an ISA. You can invest the full amount into a Stocks & Shares ISA or Cash ISA (including property and company shares, which have the potential to grow in value. Funds will invest Our share price
Lifetime, Help to Buy, or Innovative Finance) – alternatively you can split your investment in different countries or asset types depending on the objective of the individual fund.
between them, in whatever proportion you choose. Remember, the value of investments can fall as well as rise, so you could get back less
than you invest. FAQ’s
Your shares can be moved directly into a Stocks & Shares ISA, provided this is done within
90 days of the date that you exercised the Option. Your shares can still be transferred into You’ll find lots of useful information on saving and investing for the future, from videos
an ISA after this period, but they would have to be sold and repurchased – you would to interactive tools and useful budget calculators. You can visit the platform through
therefore incur dealing charges and you might be liable to CGT. MyAviva by logging into your existing account or registering as a new user on: Matching Share Plan
www.aviva.co.uk/investments for ISAs and Investment accounts, and
How can I move my shares into an ISA? www.aviva.co.uk/retirement for Pensions.
Vested Share Account (VSA)
1. You must first request a share certificate from Computershare.
2. Once you have found a Stocks & Shares ISA provider you would like to use, it’s likely
you will need to send them your share certificate, your letter of appropriation (which Financial and tax
is available on request from Computershare), and their completed Stocks & Shares ISA
application form.
Aviva Investment Products
If you require advice on your own personal circumstances and whether or not to move your
shares into an ISA, you are recommended to seek independent professional advice.
Contact Computershare
Aviva Investment Account > Aviva Pension >
Aviva ISA >
MenuWe have summarised 3 ways you could save for your future with Aviva below.
Aviva ISA Aviva Investment Account Aviva Pension
(Stocks & Shares ISA) (SIPP*)
The Aviva ISA (Individual Savings Account) is a Stocks The Aviva Pension is a self-invested personal pension
& Shares ISA that allows you to invest your money The Aviva Investment Account enables you to invest (SIPP). It lets you build up a retirement pot in a tax
in a tax-efficient way. You can invest up to the ISA in a wide range of investment funds through a single efficient way.
What is it? allowance in a tax year. account which you can manage online.
You have access to a wide range of investments funds
You have access to a wide range of investment funds This could be an option for you if you’ve already used up which you can manage online. You can also combine
which you can manage online. your ISA allowance, even though you may pay some tax existing pots into one to make management easier. You
on any returns from an Investment Account. should check what benefits you might lose if you do Introduction
You will not be able to transfer shares into this ISA. transfer your pension.
Yes – no capital gains tax to pay on any gains,
Are there tax Yes – no CGT to pay on any gains, and any income or and any income or dividends are free from any Your choices
No.
benefits? dividends are free from any further income tax. further income tax. Plus potential income tax relief
on contributions.
If you’re a UK taxpayer you’ll get tax relief on pension Making your choice
Are there limits to
contributions up to the greater of £3,600 or 100%
how much I can pay Currently up to £20,000 tax free. No limit.
of your earnings subject to the annual allowance limit
in each tax year?
of £40,000. Key dates
When can I take When you like, though any withdrawals will lose their When you like, though you may have to pay income
From age 55.
money out? tax benefit and can’t currently be replaced. tax and/or capital gains tax.
Maturity calculator
What are the charges?
● Low annual charges – Special staff Aviva product charge of no more than 0.20% p.a Our share price
● In addition to Aviva’s charge, each fund you invest into will have its own annual charge. This will be shown as the Ongoing Charges Figure (OCF)
● These charges apply to all products detailed above. A full charging structure can be found on our product pages FAQ’s
Aviva charge
Matching Share Plan
Value of your investments Annual charge *Please note: The Aviva Pension (SIPP) is not your Aviva staff pension arrangement into which you can make contributions directly
from your salary and to which Aviva also makes contributions. Please consider the added incentive of employer payments into the staff
First £50,000 0.20% scheme before making any decisions. For more information on how you can make a one-off contribution into your Aviva staff pension Vested Share Account (VSA)
Next £200,000 0.175% arrangement, please read the Financial and tax section.
Next £250,000 0.125% While we have given you some the facts about our investment products and services, we haven’t given you personalised financial advice
Amount above £500,000 0.00% and nothing in this brochure is a personal recommendation. This is a simple summary of Aviva’s consumer platform, please go to Financial and tax
www.aviva.co.uk/savings-and-retirement for full details. Remember, the value of investments can go down as well as up and you may not
get back the amount that was invested. If you are looking for a personal recommendation, or are not sure whether a product or service is
right for you, you should ask a financial adviser, who may charge for their service.
Aviva Investment Products
Contact Computershare
Aviva Investment Account > Aviva Pension >
Aviva ISA >
MenuThe Aviva SAYE Maturity 2017
You can find further information on the Aviva SAYE by contacting
Computershare Plan Managers:
AvivaSAYE@computershare.co.uk
http://saye.at.aviva.com/avivashareplans
0371 495 0105*
*Lines are open from 8.30am to 5.30pm (UK time), Monday to Friday (excluding public holidays). Please call +(44) 117 378 8361
if calling from outside the UK.
Please note that this communication and its content is for information only. It does not constitute personal, financial or tax advice.
Remember that the value of Aviva shares, like any asset, can increase or decrease and you may not get back the amount that was invested.
If you are in any doubt as to what action to take, please seek independent professional advice.
In the event of any inconsistency between this brochure and the rules of the Plan or the relevant legislation, the rules of the Plan and
relevant legislation will prevail. Any references to taxation are for guidance only.
Please note that your participation in the Aviva SAYE plan does not form part of your contract of employment and is governed by and
subject to the Aviva SAYE rules. The rules contain specific provisions relating to your rights under the Aviva SAYE plan.
There is no guarantee that the Aviva SAYE plan will be operated in future years, or if it is operated, that you will
be eligible for participation in it. Copies of the Aviva SAYE rules and prospectus are available on the
Aviva Share Plans website at saye.at.aviva.com/avivashareplans.You can also read
