The wait is over!
Your Aviva Save As You Earn plan
is reaching maturity.
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,
“
Owners make
smarter decisions
Thank you for taking part in the Aviva Save As You Earn (Aviva SAYE) plan – and
backing the success of our Company. Aviva has become a wholly different Company
since the start of your savings contract and is delivering consistent, stable and
predictable growth despite challenging market conditions. And, thanks to your hard
work, we are confident in our ability to deliver on our promises to our shareholders
and customers.
But we still have much to do to unlock Aviva’s potential, especially as we continue to
transform the business through digital. We must live our Aviva values – create legacy,
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
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.
It also provides details of how to make the most of your savings – and to build your
stake in Aviva through the Matching Share Plan.
So please take the time to read it so you are well prepared to make the decision that
is best for you.
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
Aviva shares at the Option Price will lapse. If you have any further queries, please
contact Computershare.
Thank you once more. I look forward to working with you as we strive to reach our
full potential, by building a business focused on customers, with digital at its core and doing nothing less than transforming our industry.
Yours sincerely,
Introduction
Your choices
Making your choice
Key dates
Maturity calculator
Our share price
FAQ’s
Matching Share Plan
Vested Share Account (VSA)
Financial and tax
Aviva Investment Products
Mark Wilson
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
4. Leave your savings in the plan for a further two years, only
available for the 2011, 5 year plan:
Your choices
You have 6 months from your maturity date to decide what to do with your savings.
Plan Year
Option Price
Bonus Rate
2013 (3 year)
£3.12
-
2011 (5 year)
£2.68
0.9
2009 (7 year)
£3.16
5.2
You can find the current Aviva share price here.
Making your choice
Key dates
Maturity calculator
Our share price
FAQ’s
When can I make my choice?
You can choose what you would like to do with your savings from the date your
plan finishes – this is known as the ‘maturity date’. In most cases your maturity date
will be 1 December 2016. If you have deferred a payment, your maturity date will
have been delayed by one month for each deferred payment. You can find your
maturity date in your maturity email or letter.
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.
Matching Share Plan
Vested Share Account (VSA)
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
•
issued to you as a share certificate in your name
No fees or tax will be deducted when buying shares at the Option Price.
What is an online VSA?
The VSA (or Vested Share Account) is a nominee share account managed by
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
Introduction
Your choices
Making your choice
Key dates
What should I consider?
If you decide to buy Aviva shares, there are additional options you could consider such as:
•
•
Transferring your shares into an ISA, which has certain tax advantages. Please
read our ‘Saving for your future’ guide for further information
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
information on dividends, the Company’s Annual General Meeting, useful Q&As,
and details of how you can manage your shareholding online
Click here for details of how to make this choice
Maturity calculator
Our share price
FAQ’s
Matching Share Plan
Vested Share Account (VSA)
Financial and tax
Aviva Investment Products
Show choices summary
Contact Computershare
Menu
Choice Two - 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
are sold.
What should I consider?
Introduction
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
‘Saving for your future’ section for further information.
Important information
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.
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
broker, you should elect to receive a share certificate.
If you submit your instruction during London Stock Exchange (LSE) opening hours,
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
can be found in the FAQs section under ‘When will my dealing instruction be placed?’
Charges:
A dealing charge of 0.35% will apply to the sale of your shares, subject to a
minimum fee of £20.
Click here for details of how to make this choice
Making your choice
Key dates
Maturity calculator
Our share price
FAQ’s
Matching Share Plan
Vested Share Account (VSA)
Financial and tax
Aviva Investment Products
Show choices summary
Contact Computershare
Menu
Choice Three - Take your savings as cash
You can close your account and have your savings returned to you in full, in cash.
What should I consider?
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.
Introduction
Important information
Even if you take your cash back, you can still exercise your Option to buy Aviva shares during
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
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
6 months of your maturity date.
Click here for details of how to make this choice
Your choices
Making your choice
Key dates
Maturity calculator
Our share price
FAQ’s
Matching Share Plan
Vested Share Account (VSA)
Financial and tax
Aviva Investment Products
Show choices summary
Contact Computershare
Menu
Choice 4 - Only available for the 2011, 5 year
plan Leave your savings in the plan for a further
2 years
You can continue your savings contract for a further 2 years to receive a larger tax-free
bonus of 3.5 times your monthly contribution (e.g. £350 in total if you are saving £100 per
month).
The last deduction from your salary was in October 2016 (provided you have not missed any
payments). Your savings will be held for an additional 2 years with no further deductions
from your salary. However, if you choose to do this, your option will lapse 6 months from
your original maturity date and you will not be able to purchase shares at the Option
Price at the end of the 2 year period.
Please note this is the default option if you do not exercise your Option or arrange for your
savings account to be closed with Equiniti (the savings carrier).
Click here for details of how to make this choice
Introduction
Your choices
Making your choice
Key dates
Maturity calculator
Our share price
FAQ’s
Matching Share Plan
Vested Share Account (VSA)
Financial and tax
Aviva Investment Products
Show choices summary
Contact Computershare
Menu
Making your choice
To make your choice:
1. Log into the Aviva Share Plans website:
www.computershare.com/avivashareplans
Introduction
You will need your Shareholder Reference Number (SRN) provided on your
maturity communication, and your Personal Identification Number (PIN). If
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
correct email address, you are advised to have this sent to your home
address.
2.Click on the ‘SAYE Maturity’ button which can be found
on the right hand side of the home page, then click on the
‘Maturity’ link next to your matured savings contract and
follow the onscreen instructions.
Please note that once a valid instruction has been received by
Computershare, they will be obliged to process your instruction,
even if the Aviva share price is below the Option Price.
Your choices
Making your choice
Key dates
Maturity calculator
Our share price
FAQ’s
Matching Share Plan
Vested Share Account (VSA)
Financial and tax
Aviva Investment Products
Contact Computershare
Menu
Key Dates
01
Dec 2016
Maturity date
Introduction
Your choices
31
May 2017
Last date for exercise
Making your choice
Key dates
01
Jun 2017
01
Dec 2018
Option to buy shares at the
Option Price lapses
Maturity calculator
Our share price
Extra bonus added to 5
year participants who
leave savings for a
further two years
The above dates assume that you have not deferred any
payments. Your maturity date will be shown on your
email or letter. The date your Options lapse will be 6
months from your maturity date.
FAQ’s
Matching Share Plan
Vested Share Account (VSA)
Financial and tax
Aviva Investment Products
Contact Computershare
Menu
Maturity Calculator
Reset Form
Please select your contract term:
3 Year (36 months - Option Price £3.12)
If you have a 3 year term contract there is no bonus payable on maturity.
5 Year (60 months - Option Price £2.68)
If you have a 5 year term contract you will be paid a bonus equivalent to 0.9 times your monthly savings amount on the maturity date.
7 Year (60 months - Option Price £3.16)
If you have a 7 year term contract you will be paid a bonus equivalent to 5.2 times your monthly savings amount on the maturity date.
Enter savings amount:
£
This is the amount of money you had deducted from your pay each month.
Introduction
Your choices
Making your choice
Key dates
Number of shares: This is the total number of shares that you can buy with your total savings.
Maturity calculator
Shares you wish to sell:
If you do not sell all of your exercised shares you can choose to transfer the balance of
your shares to the VSA or receive a share certificate.
Our share price
Enter expected sale price:
£
his is the price you expect Aviva shares to be worth on the London Stock Exchange on
T
the date you exercise your option to buy and sell them.
FAQ’s
Estimated gross value:
This is the value of your shares before dealing commission is deducted.
£
Please note that a minimum charge of £20 will be applied to the sale of shares.
Commission charged:
£
This
is the dealing commission you will be charged for selling your shares on the London
Stock Exchange.
Matching Share Plan
Vested Share Account (VSA)
Financial and tax
Estimated net value: £
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
read the Aviva Investment Products page to see how you can further re-invest your money.
Aviva Investment Products
Contact Computershare
Menu
Our share price
“
our organisation
is more focused and we
are delivering on our
investment thesis of cash
flow plus growth
“
Since 2012 Aviva has undergone a significant turnaround, culminating in the successful
acquisition and integration of Friends Life. Our balance sheet has been secured, our
organisation is more focused and we are delivering on our investment thesis of “cash
flow plus growth.”
Despite the significant improvements we have made to our business, 2016 has been a
disappointing year for share price performance. The early part of the year was affected
by turbulent investment markets, which impacted Aviva along with all major UK financial
stocks. The UK decision to exit the European Union further added to the complex
market dynamics we have faced. Despite this, we have been clear and consistent in
articulating our strategy, and following delivery of a successful capital markets day and
half year results, we have recovered from the lows seen in June.
Of course, there remains much more to be done. Our shares still trade at a discount
relative to our insurance sector peers and I want to turn this into a premium. To
achieve this, we will need to deliver on our objective to consistently grow profits,
cash-flow and dividends and become known as the digital leader in the insurance
sector. Given the positive ‘can-do’ culture at Aviva, I am confident we will succeed.
Chris Esson
Group Investor Relations Director
Introduction
Your choices
Making your choice
Key dates
Maturity calculator
Our share price
FAQ’s
Matching Share Plan
Vested Share Account (VSA)
Financial and tax
Aviva Investment Products
Contact Computershare
Menu
FAQs
What happens if I don’t take any action?
If you don’t take any action, your option to buy shares at
the Option Price will automatically lapse 6 months from your
maturity date and you will need to contact Computershare to
close your account and have your funds returned to you via
BACS or by cheque.
Will I have to pay any tax or will any charges be applied
when buying shares at the Option Price?
No fees or tax will be payable when buying shares at the Option
Price. Be aware that you may be subject to Capital Gains Tax
when selling your shares in the future; please see the
Tax Information page for more details.
Buying & Keeping Shares
Buying & Selling Shares
How do I transfer shares to my spouse/civil partner?
When submitting your instruction to exercise, you will need to
select that you wish to receive a share certificate if you want to
transfer shares to a spouse/civil partner. You may transfer shares
to a spouse/civil partner once your share certificate has been
received. Please contact Computershare for more details on how
to arrange a share transfer.
How do I sell my shares in the future?
If you choose to receive a share certificate, you can sell your
shares using any certificated share dealing service. Most high
street banks offer share dealing facilities. If you decide to
transfer your shares into the VSA, please ensure you read the
VSA information page.
How long will it take to get my share certificate?
You will receive your share certificate within 10 days of
submitting your instruction to Computershare. You may wish to
consider transferring your shares into the VSA, which means you
do not have to wait to receive a share certificate or risk losing it.
Can I choose to sell some of my shares and keep the rest?
Yes, you can choose to sell a specific number of shares. If you do
not sell all of your exercised shares you can choose to transfer
the balance of your shares to the VSA (which will appear in your
VSA account the following day) or receive a share certificate.
Please allow up to 10 days to receive your share certificate.
What will happen to any residual amount left over from
the purchase?
If you choose to purchase shares at the Option Price, there may
be a small amount of cash leftover that cannot be used to buy
a whole share. This residual cash balance will be donated to
Aviva’s nominated charity, currently The British Red Cross. If you
do not wish to donate your residual cash balance, which will be
less than the Option Price, to charity you can select to receive a
cheque for this amount. Computershare will send this within 10
working days of your instruction being received.
Can I exercise my Option and buy some shares and take
the rest as cash?
No. You only have the option to use all of your savings (and
tax-free bonus if applicable) to purchase all of the Aviva shares
granted to you.
What if the share price falls after I have submitted my
instruction?
The price shown on the site when you submit your instruction
(which is irrevocable once submitted) will be a 20 minute
delayed price and you may not receive the exact price shown.
If you sell outside of London Stock Exchange (LSE) hours, your
shares will be sold when the LSE next opens. Share prices can
go down as well as up and you should always check the current
share price before making a decision. If you are unsure, you
should seek independent professional advice.
When will my dealing instruction be placed?
Your dealing will be placed in line with the following
Computershare Exercise and Processing Terms and Conditions:
If your instruction is received by us during Stock Exchange
Trading Hours and we accept such instruction to sell, we will
aim to exercise your Option and instruct the Broker to execute
the sale of your resultant Shares on your behalf on that Stock
Exchange Trading Day. Instructions which are received after the
close of Stock Exchange Trading Hours will be treated as having
been received at the opening of Stock Exchange Trading Hours
on the next Stock Exchange Trading Day.
If your account matures on 1 December 2016, there will be
a final processing date on 31 May 2017 and your instruction
must be received by 4.30pm on the final processing date.
If your original savings contract has been extended to
complete previously missed payments, your valid instruction
must be received by 4.30pm on the business day prior to
your Option lapsing. If your instruction is received by us
during Stock Exchange Trading Hours and we accept such
instruction to sell, we will aim to exercise your Option and
instruct the Broker to execute the sale of your resultant
shares on your behalf on that Stock Exchange Trading Day.
Instructions which are received after the close of Stock
Exchange Trading Hours will be treated as having been
received at the opening of Stock Exchange Trading Hours
on the next Stock Exchange Trading Day.
Introduction
Your choices
Making your choice
Key dates
Maturity calculator
Taking Savings As Cash
Do I have to pay UK Tax?
There is no UK income tax or National Insurance
Contribution payable on the repayment of your savings,
nor on the exercise of your Option at maturity.
What happens if I leave the Company before or
after my contract reaches maturity?
If you leave the Company before or after your contract
reaches maturity, you will need to refer to your leaver
pack, which Computershare will send to you within
6 weeks of your leaving date. If you have not yet
received a leaver pack from Computershare, please
contact Computershare.
You will have 6 months from your maturity date or
leaving date, whichever is sooner, to exercise your
Option and buy Aviva shares at the Option Price. In
order for your contract to mature you will need to
make up any outstanding payments; please refer to
your leaver pack for instructions on how to do this.
Our share price
FAQ’s
Matching Share Plan
Vested Share Account (VSA)
Financial and tax
Aviva Investment Products
Contact Computershare
Menu
The Aviva Matching Share Plan (Aviva MSP)
The Aviva MSP is another Aviva share plan which enables you to become
an owner in the Company.
Key features
•
Contribute between £5 and £150 a month, straight from your
pre-tax and NIC pay
•
Your monthly contributions are used to buy Aviva shares (called
Partnership Shares)
•
Aviva will award two Matching Shares for every Partnership
Share bought with the first £5 to £40 you invest each month
•
Both the Partnership Shares and the Matching Shares are
held in a trust for your benefit
Key benefits of the Aviva MSP
•
Become an owner in the Company immediately
•
Get three shares for the price of one on the first £40 you invest
•
Receive any dividend declared by Aviva on ordinary shares
•
Start, stop or amend your contributions at any time
•
Sell your Partnership Shares at any time (although you would
lose your Matching Shares if you sell your Partnership
Shares within three years of the purchase date)
•
Pay no UK tax or NIC on shares held in the trust for at
least 5 years
•
You can join the plan at any time
•
If you decide to leave the Company, you will still retain
your shares. However, you may be subject to tax
dependent on how long they have been held in the trust
For more information about the Aviva MSP, visit:
www.computershare.com/avivashareplans
Please note that this plan is not available to Solus employees.
Matching Share Plan vs. Save As You Earn
A
viva employees can choose to invest in the Aviva MSP, SAYE or both. But what are the main
features and differences between the plans?
The Aviva MSP is currently only available to employees in the UK only.
Matching Share Plan (MSP)
Save As You Earn (SAYE)
Flexibility
You can start, stop or change the monthly
amount you invest at any time
The amount you save is fixed. Annual
invitation window to join
Contributions
Invest between £5 and £150 per month
Invest between £5 and £500 per month
What you buy
Partnership Shares at the market price
each month Aviva will match 2 free shares
for every 1 share purchased up to the first
£40 you contribute each month
Option Price fixed at the start @ 20% discount
at the time of invitation. You can choose to
purchase shares at the Option Price at the
end of the saving period
Contributions deducted via payroll from
gross pay (before Income Tax and
National Insurance Contributions
are deducted)
Contributions deducted via payroll from
net pay (after Income Tax and National
Insurance Contributions are deducted)
Shareholder
rights
Become a shareholder right away and
receive dividends on your shares
You might not become a shareholder.
After 3 or 5 years you have the choice
to buy shares or take your cash savings
Leaving*
If you leave within 3 years, your shares
held in the plan will be released to you,
subject to Income Tax and National
Insurance Contributions (NIC)
If you leave before the end of your
3 or 5 year savings contract,
you get your savings back
If you keep your Partnership Shares and
Matching Shares for 5 years (or 3 years for
Dividend Shares), any sale is free of Income
Tax and NIC. There is no Capital Gains Tax
(CGT) payable when you withdraw shares
from the plan - your CGT base price is the
price when the shares are withdrawn
If you choose to exercise your Options
and buy shares, there is potential
Income Tax liability on any future
dividends and potential Capital
Gains Tax (CGT) liability on any
future sale of your shares
You must keep your Partnership Shares for
3 years in order to keep your
Matching & Dividend shares (whilst you
remain employed)
If you choose to exercise your
Options and buy shares, you
can sell them at any time
Your pay
Tax
Holding
period
*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.
Introduction
Your choices
Making your choice
Key dates
Maturity calculator
Matching Share Plan
FAQ’s
Matching Share Plan
Vested Share Account (VSA)
Financial and tax
Aviva Investment Products
Contact Computershare
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
Computershare’s VSA (Vested Share Account).
What is the VSA?
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
nominee account). You can access your shares held in the VSA through the Aviva Share Plans
website.
What are the benefits of the VSA?
• Free to hold shares
• Easy to manage online – view valuations and place deals with the click of a button
• Trade securely and instantly using the ‘Real Time’ dealing facility. You can also place ‘Limit
Orders’ (where you set the minimum price at which you are willing to sell your shares)
• No share certificates to worry about – replacing a lost certificate can be costly and time
consuming
• You still have full rights to receive dividends and to vote on resolutions put to shareholders
at general meetings, as you remain the beneficial owner of the shares
VSA – Questions and Answers
If I transfer my Shares to the VSA, what happens to any dividends payable?
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.
What shares can I transfer into the VSA?
You can transfer any shares purchased by exercising an Option through the Aviva SAYE
plan into the VSA. You cannot normally transfer any other shares.
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
the Aviva Share Plans website under ‘Vested Share Account’ on the ‘Portfolio’ page.
What are the dealing charges applied when selling shares or transferring shares
out of the VSA?
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
dealing fee of 0.35% with a minimum fee of £20. Should you ask for the proceeds to
be wired to a non-UK bank account, there would be an additional £15 fee.
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
Aviva insider list).
Introduction
Your choices
Making your choice
Key dates
Maturity calculator
Our share price
FAQ’s
This document contains information regarding the VSA but
you are advised to read the VSA terms and conditions which
can be found under ‘Plan documentation’ on the Aviva Share Plans
website.
Matching Share Plan
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,
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)
is allowed a capital gains annual exemption (currently £11,100 for the 2016/17 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.
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.
ISAs - tax efficient investing
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
Introduction
Your choices
Making your choice
Key dates
Maturity calculator
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,
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
of how this can be practically applied.
Aviva Staff Pension Scheme
As an existing member of staff, it’s possible for you to use some of your SAYE maturity
savings to make a one-off member contribution into the Aviva Staff Pension Scheme
(ASPS). If you wish to do so, you’ll need to contact the Staff Pensions Money Purchase
team to arrange the payment, which can be made by either cheque or bank
transfer. You can reach the team on 0800 046 6174 or by e-mailing
[email protected].
More
Info
FAQ’s
Matching Share Plan
Vested Share Account (VSA)
Financial and tax
Aviva Investment Products
Contact Computershare
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UK SAYE Tax Efficient Example
Aviva Staff Pension Scheme cont’d...
The employee contribution should be eligible for income tax-relief via self-assessment,
dependent upon your circumstances. As with any pension planning, you are responsible
for the amount being paid and any subsequent tax or annual allowance liabilities. We
recommend that you consider these before making a payment.
If you would like financial advice you should speak to an Independent Financial Adviser
(IFA). To find an IFA in your area you can contact IFA Promotion Ltd by visiting its website at
www.unbiased.co.uk.
Limits on tax relief - annual allowance amount
Tax year
Annual allowance
2016-17
£40,000*
Mr Smith has been saving £250 per month for 5 years (60 months), with an option in ABC
plc at an Option Price of £3.00, which he will be allowed to exercise after a set period. The
share price on exercise is £5.00 and he later sells the shares for £7 per share.
Savings to shares calculation:
Total Savings (£250 x 60) = £15,000
Total Shares available from Option (£15,000 / £3.00) = 5,000 shares
Number of Shares
The AA is the maximum amount of pension contributions you and your Employer can make
in any one tax year, without a charge applying. The AA charge is applied to the amount
over the AA and is charged at your highest marginal rate.
What is the current AA?
The current AA is £40,000 but could be less if:
• you have already started to access any money purchase schemes flexibly when your AA
will be replaced with the Money Purchase Annual Allowance (MPAA) of £10,000: or
• 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
£40,000 by £1 for every £2 of income, ultimately reaching £10,000 if your adjusted
income is £210,000.
Subject to certain anti-avoidance rules, you would not be liable to this tapering if your
statutory income (i.e. excluding employer pension contributions) is less than £110,000.
*Money purchase pension pots under £10,000 taken through the small pots rules are exempt.
What about unused AA?
You can carry forward any unused AA for up to three years. If you’re new to the Scheme,
think about the other pension savings you may have made with your previous employer or
in a personal pension scheme.
Where can I find out more?
You can find out about the different ways the changes on AA could affect you, depending
on your earnings, at www.gov.uk/government/publications
Scenario B
Tax Planning
5,000 shares
5,000 shares
Shares transferred to a ISA:
£15,240 Stocks and Shares ISA = 3,048 (£15,240 / £5.00)
3,048 shares
Transfer half of remaining shares to Mrs Smith
976 shares
Shares remaining in Mr Smith’s name
What is the Annual Allowance (AA)?
Scenario A
No Tax Planning
5,000 shares
976 shares
£35,000
£13,664 (1,952 non
ISA shares sold)
Introduction
Your choices
Making your choice
CGT Calculation
Proceeds if non-ISA shares sold at £7.00 per share
(see scenario B below)
Proceeds if shares sold in ISA at £7.00 (Free of CGT)
£21,336
Total proceeds
£35,000
Less cost of shares (5,000 x £3)
(£15,000)
(1,952 x £3) (Non ISA shares for CGT calculation
£35,000
(£5,856)
Gain liable to CGT from shares sold
£20,000
£7,808
(£13,664 - £5,856)
Less Annual Exemption (Mr and Mrs Smith in Scenario B)
(£11,100)
(£22,200)
Net gain liable to CGT (All shares sold)
£8,900
£Nil
Scenario A – CGT is charged at 10% or 20% depending on the total amount of Mr
Smith’s taxable income.
Scenario B – The shares transferred to an ISA and to Mrs Smith can be sold at the same
time, obtaining the same price, to raise the same total proceeds as Scenario A. In this
scenario, no CGT will be payable as the ISA sale will be free of CGT and the proceeds from
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.
As a CGT “shelter”, capital losses made in an ISA cannot be offset against chargeable
capital gains.
Disclaimer:
These notes are intended as a general guide to the subject matter and are not intended to provide or
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
relate to UK taxes only and may differ for other persons and jurisdictions.
Key dates
Maturity calculator
Our share price
FAQ’s
Matching Share Plan
Vested Share Account (VSA)
Financial and tax
Aviva Investment Products
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Saving for your future
MoneyWorks
We are delighted to announce the launch of a new employee benefit to help you take
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
and downloads to help you make informed decisions and actions in respect of the financial
health of you and your loved ones.
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
can continue to manage your financial health.
I might buy Aviva shares at maturity
What could I consider?
Individual Savings Accounts (ISA)
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:
• Free from any capital gains tax when you sell them; and
• Any interest or dividends will be free of any further income tax charge
UK resident taxpayers can subscribe up to £15,240 (for the 2016/17 tax year) per annum into
an ISA. You can invest the full amount into a Stocks & Shares ISA or Cash ISA – alternatively
you can split your investment between them, in whatever proportion you choose.
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
an ISA after this period, but they would have to be sold and repurchased – you would
therefore incur dealing charges and you might be liable to Capital Gains Tax.
How can I move my shares into an ISA?
1.You must first request a share certificate from Computershare.
I might buy Aviva shares at the Option Price and sell my shares
or
I might take my savings as cash
What could I consider?
Continue saving for your future with Aviva investment products
If you are considering either of these choices you might need ideas of
how you could use your sale proceeds to continue saving for your future.
5
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Our Consumer Savings Platform is specially designed for easy online use, and
enables you to invest in a wide range of funds. What’s more we’ve just increased
the discount you get as a member of staff to 50% off the Aviva platform charge.
What are funds?
Put simply, an investment fund pools lots of people’s money together, with the intention
of making it grow. A fund is split into units and this is what your investment in a
fund buys.
A fund manager uses the money from investors to buy assets. Assets are investments like
property and company shares, which have the potential to grow in value. Funds will invest
in different countries or asset types depending on the objective of the individual fund.
Remember, the value of investments can fall as well as rise, so you could get back less
than you invest.
You’ll find lots of useful information on saving and investing for the future, from videos
to interactive tools and useful budget calculators. You can visit the platform through
MyAviva by logging into your existing account or registering as a new user on:
www.aviva.co.uk/investments for ISAs and Investment accounts, and
www.aviva.co.uk/retirement for Pensions.
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
is available on request from Computershare), and their completed Stocks & Shares ISA
application form.
Introduction
Your choices
Making your choice
Key dates
Maturity calculator
Our share price
FAQ’s
Matching Share Plan
Vested Share Account (VSA)
Financial and tax
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 ISA >
Aviva Investment Account >
Aviva Pension >
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We have summarised 3 ways you could save for your future with Aviva below.
Aviva ISA
(Stocks & Shares ISA)
What is it?
Aviva Investment Account
The Aviva Pension is a self-invested personal pension
(SIPP). It lets you build up a retirement pot in a tax
efficient way.
The Aviva ISA (Individual Savings Account) is a Stocks
& Shares ISA that allows you to invest your money
in a tax-efficient way. You can invest up to the ISA
allowance in a tax year.
The Aviva Investment Account enables you to invest
in a wide range of investment funds through a single
account which you can manage online.
You have access to a wide range of investment funds
which you can manage online.
This could be an option for you if you’ve already used up
your ISA allowance, even though you may pay some tax
on any returns from an Investment Account.
You have access to a wide range of investments funds
which you can manage online. You can also combine
existing pots into one to make management easier. You
should check what benefits you might lose if you do
transfer your pension.
No.
Yes – no capital gains tax to pay on any gains,
and any income or dividends are free from any
further income tax. Plus potential income tax relief
on contributions.
No limit.
If you’re a UK taxpayer you’ll get tax relief on pension
contributions up to the greater of £3,600 or 100%
of your earnings subject to the annual allowance limit
of £40,000.
You will not be able to transfer shares into this ISA.
Yes – no capital gains tax to pay on any gains, and any
income or dividends are free from any further income
tax.
Are there tax
benefits?
Aviva Pension
(SIPP)
Are there limits to
how much I can pay
in each tax year?
Currently up to £15,240 tax free.
When can I take
money out?
When you like, though any withdrawals will lose their
tax benefit and can’t currently be replaced.
When you like, though you may have to pay income
tax and/or capital gains tax.
From age 55.
What are the charges?
Introduction
Your choices
Making your choice
Key dates
Maturity calculator
Our share price
●
Low annual charges – Special staff Aviva charge of no more than 0.20% p.a
●
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
Aviva charge
FAQ’s
Matching Share Plan
Value of your investments
Annual charge
First £50,000
0.20%
Next £200,000
0.175%
Next £250,000
0.125%
Amount above £500,000
0.00%
Please note: The Aviva Pension (SIPP) is not the Aviva Staff Pension Scheme 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 scheme
before making any decisions. For more information on how you can make a one-off contribution into the Aviva Staff Pension Scheme,
please read the Financial and tax section.
While we have given you some the facts about our investment products and services, we haven’t given you personalised financial advice
and nothing in this brochure is a personal recommendation. This is a simple summary of Aviva’s consumer platform, please go to
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.
Vested Share Account (VSA)
Financial and tax
Aviva Investment Products
Contact Computershare
Aviva ISA >
Aviva Investment Account >
Aviva Pension >
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The Aviva SAYE Maturity 2016
You can find further information on the Aviva SAYE by contacting Computershare Plan Managers:
www.computershare.com/avivashareplans
[email protected]
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 www.computershare.com/avivashareplans.