Share Reward Scheme

Our Share Reward Scheme (SRS) offers you the chance to receive an award of free shares in British American Tobacco based on the performance of the company against set targets.

International Assignees a

Here’s how it works

You can easily apply to join the scheme via the Computershare site when you are invited. The invitation to join is usually issued every February. If your application is successful you’ll remain in the scheme every year unless you decide to opt out.

If you’re accepted into the SRS you’ll be awarded a number of free shares in British American Tobacco, based on how well the company has performed against certain targets in the previous financial year.

There are four measures to the Company’s performance, each carries its own weighting towards the total award. It’s split like this:

Performance Measures 2023 (shares awarded in 2024)

The results of these measures are judged using three performance levels:

Threshold		The point that must be exceeded to receive any award
Target		Objectives surpassed
Maximum		Objectives surpassed by a wide, but achievable, margin.

Performance measures may change each year.

NB. The maximum value of your award cannot exceed £3,600.

Am I eligible?

You are eligible to participate in the scheme as long as you are an employee of British American Tobacco (or a participating company) and working in the UK.

You also need to have been an employee in the UK for at least four months on the award date.

You must be resident in the UK for tax purposes, but don’t worry, as if you go on international assignment as a UK employee you can participate in the International Share Reward Scheme (ISRS) instead.

How many shares could I receive?

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

You just have to log into your Computershare account to find out how many shares you’ve been awarded.

Dividend Shares

On top of that, any dividends paid on your shares will be reinvested by the Trustee into even more shares for you. These are known as Dividend Shares. You’ll need to hold onto them for at least three years.

When could I receive my shares?

The shares are yours from the date of the award but are held in Trust as you have to hang onto them for a minimum of three years.

At the end of that holding period you can continue to keep the shares in Trust, transfer the shares into your name or instruct the Trustee to sell them on your behalf. Remember, if you withdraw the shares from Trust within five years there may be tax to pay.

Will I have to pay tax?

You won’t have to pay any tax when you sell or transfer your free shares provided you leave them in your account for at least five years from the award date. If you sell or transfer your shares before the five years are up then you’ll have to pay income tax and National Insurance on the proceeds.

You will not have to pay tax on your Dividend Shares provided you leave them in your account for at least three years from the date they are acquired.

Remember if you remove the shares from Trust and continue to hold them, you may also have to pay some capital gains tax at sale. 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.

If you leave British American Tobacco for any other reason you can keep any shares previously awarded, but you’ll need to withdraw them from the BAT Trust. You can instruct the Trustee to either sell or retain your shares, and any shares you choose to retain may be transferred to your vested Share Plan Account (SPA) or to an independent broker.

If you leave British American Tobacco due to:

Redundancy

Illness or injury

Retirement

The company or business you work for ceases to be part of British American Tobacco

You can withdraw your shares tax-free.

Look out for communications from Computershare after you leave BAT.

If you leave for any other reason:

You may have to pay UK income tax and NIC depending on how long your shares were held in Trust. The trustee will sell enough of your shares to pay necessary taxes.