Partnership Share Scheme
Our Partnership Share Scheme is a brilliant way of becoming a British American Tobacco shareholder from the moment you make your first monthly investment.
Here’s how it works
It’s really easy to get started:
STEP 02
Choose how much you want to invest each month from your gross (pre-tax) pay. You can invest between £10 and £150 per month, but that amount must be no more than 10% of your gross monthly (take home) pay.
STEP 03
The Trustee uses your investment to buy shares in British American Tobacco (known as Partnership Shares) at the market price every month on your behalf.Don’t worry – you can stop or change your contributions at any time. Just log into your Computershare account and follow the guided online process for the same.
Your shares are held in trust until you decide to sell them or transfer them into a different account.
Remember, as soon as you have your first shares you’ll be a shareholder and will be able to enjoy the benefits that brings, like voting rights, possible dividends and potential capital growth.
 |
Am I eligible? |
As long as you’re an employee of British American Tobacco (or an associated company) and you work in the UK, then you’re eligible to join the Partnership Share Plan.
How many shares will be bought for me each month?
The number of shares you’ll buy depends on:
- How much you invest each month
- The market price of British American Tobacco shares at the time they are acquired for you
One of the best bits about a plan like this one is that your investment is taken from your pre-tax pay so you’re effectively getting a discount on the share price. In effect that means that if you’re a basic rate taxpayer and you buy £100 of shares from your pre-tax pay, in real terms it will only cost you £70!
Dividend Shares
The news gets better! Any dividends paid on your shares will be automatically reinvested by the Trustee into even more shares for you. These are known as Dividend Shares and you’ll need to hold onto them for at least three years.
 |
Will I have to pay tax? |
The short answer is that you won’t have to pay any income tax or national insurance when you sell or transfer your shares, as long as you keep your:
- Partnership shares in your account for at least five years from the date they are acquired.
- Dividend shares in your account for at least three years from the date they are acquired.
If you sell or transfer your shares before the times mentioned above then there will be some tax to pay.
Remember you may also have to pay some capital gains tax. 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 leave British American Tobacco due to:
you’ll need to withdraw any shares that are still held in the Trust. This can be done tax free. You can ask the Trustee to either sell or retain your shares.
If you leave due to any other reason:
You’ll have to pay income tax and NIC on any Partnership Shares you’ve held for less than 5 years and, income tax on any Dividend Shares you’ve held for less than 3 years. The Trustee will sell enough of your shares to pay necessary tax before transferring the remainder to you.