International Share Reward Scheme
If you are a UK employee on international assignment, you will be eligible to participate in our International Share Reward Scheme (ISRS) instead of the UK SRS. The ISRS mirrors the UK SRS in that it offers you the opportunity to receive free shares in British American Tobacco based on the performance of the company against set targets. However, the ISRS is not an HMRC approved plan and there are some differences between how the two schemes operate.
Here’s how it works
The value of your award is subject to a maximum limit equivalent to £3,600 in any tax year, same as the UK SRS.
You’ll be awarded a number of conditional shares in British American Tobacco, based on how well the company has performed against targets in the previous financial year.
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Am I eligible? |
You are eligible to participate in the scheme as long as you are a UK employee on international assignment and have been continuously employed by a participating company for at least four months on the Award Date.
How many shares could I receive?
Similar to the UK SRS, the number of shares you receive will depend on:
- How the Company performs against its targets, and;
- The quoted price of British American Tobacco Plc shares on the dealing day immediately preceding the Award date
Awards are made annually, typically in April. You will be notified by Computershare when you can log in to your account to find out how many shares you’ve been awarded.
Note: The ISRS performance measures are the same as that under the UK SRS. If you have joined the Group part-way through the scheme year and are eligible, your award will be pro-rated accordingly.
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Dividends |
When your award vests you may also receive additional shares, known as “Dividend Shares”. This will be equivalent to the value of any dividends you would have received on your shares during the vesting period. Dividend Shares are transferred entirely at the discretion of the Trustees.
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When will I receive my shares? |
You’ll receive your shares at the end of the three year vesting period provided you still work for British American Tobacco.
Here is an example:
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AWARD DATE March 2024 |
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VEST DATE March 2027 |
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Will I have to pay tax? |
Depending on which country you’re in there will probably be some tax to pay when your shares vest.
In some cases we’ll be required to withhold taxes from your share income when your award vests. In others it’s your responsibility to declare and pay any taxes due via your personal tax return. Remember you may also have to pay some capital gains tax.
For International Assignees share incomes are subject to Tax Equalisation, please refer to the Global Mobility Tax Policy for further information. As you are on international assignment with BAT, you will receive appropriate tax filing support from our appointed tax services provider.
If you’re in any doubt about the tax consequences of receiving your share award we recommend you speak to an independent tax adviser.
What happens if I leave the company?
If you are dismissed from the Company your shares will be forfeited.
In all other cases your award will vest in full and the shares will be transferred to you as soon as practical after you leave.