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 Menu
Making 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 Menu
Key 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 Menu
Maturity 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 Menu
FAQs 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. Menu
The 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. Menu
The 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 Menu
UK 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 Menu
Pension 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 Menu 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 > Menu
We 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 > Menu
The 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.
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