Sharesave

Our Sharesave scheme is a really straightforward savings plan which allows you to save a portion of your after tax salary every month. After a set period of time you can use those savings to buy shares in British American Tobacco at a 20% discounted rate. This is known as the option price.

Here’s how it works

NEW for 2024: HMRC has introduced new Sharesave Bonus and interest payments so that at maturity of the plan you receive a bonus on your savings:

  • if your plan term is 3 years, then you will receive a bonus equivalent to your monthly payment multiplied by 1.1; or
  • if your plan term is 5 years, then you will receive a bonus equivalent to your monthly payment multiplied by 3.2.

For example: If you save £500 a month over a 3 year term, a bonus payment of £550 will be added. This means that your total savings over the period will be £18,550.

This amount is then used to calculate your options : £18,550/Option Price.

Further information can be found on the HMRC website.

If for any reason you need to pause your payments, you are allowed 12 payment breaks during your plan. The normal maturity date will be extended by a month for every missed payment. Please ensure you make up the missed payments directly with Computershare as payroll cannot make catch up payments on your behalf. In the event missed contributions exceed 12 months your Options will lapse.

Am I eligible?

You can participate in the plan as long as you are working in the UK and have a UK contract during the invitation period.

If you’re a UK employee who is already part of another Sharesave scheme but you’re on assignment overseas during the invitation period, you won’t be able to sign up to a new plan. However, you can continue saving into any of your existing plans.

How many shares could I receive?

The number of shares you’ll be able to buy depends on a couple of important factors:
How much you choose to save each month, and;
The option price, set just before your savings contract begins

Here’s how this might look on a three year saving contract:

If the market share price is £30 at the end of your savings period then your 185 shares will have a market value of £5,500. That’s a potential gain for you of £1840 – pretty good!

To see the example for plans prior to 2024, please click here.

Will I have to pay tax?

Another great thing about Sharesave is that it’s a government recognised Save As You Earn (SAYE) scheme, so you won’t have to pay income tax when you receive your share option or when you buy your shares.

Remember though, you may have to pay capital gains tax when you come to sell your shares depending on your personal circumstances.

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: