BARRATT DEVELOPMENTS PLC 2020 SHARESAVE SHARESAVE IS BACK SHARE IN OUR SUCCESS It’s simple: • We tell you the agreed share price (the ‘Option Price’) • You decide how much to save each month and how long for (3 or 5 years) • At the end of the 3 or 5 years you can buy Barratt shares at the Option Price, or take your savings as cash.
Find out more
HOW SHARESAVE WORKS The 2020 Sharesave is open to all employees who joined the Company on or before 17 February 2020.
You’ll need to choose how much to save. You can save any amount between £5 and £500 each month for either 3 or 5 years. Payments must be in whole pounds and the total amount you save each month into all Sharesave schemes can’t be more than £500. See page 9 for further information.
Sharesave allows you to save a fixed amount directly from your pay. You can choose to save over 3 or 5 years. At the end of the 3 or 5 years you can use these savings to buy shares in Barratt, or you can take your savings back.
If you are participating in the 2015 5-year and/or 2017 3-year Sharesave and have not missed any payments, you can exclude the amount you are contributing to those schemes from this calculation.
We have sent you an invitation telling you what it will cost to buy Barratt shares at the end of the 3 or 5 years. This is based on recent market prices, normally with a discount. This year the discount is 20% compared to 15% in previous years.
You can apply for the 2020 Sharesave either online or by phone (see details on page 6 of how to do this). Once your application has been accepted a Sharesave account will be opened for you with Lloyds Bank plc1. Your savings will then be automatically deducted from your pay after tax and paid into your Sharesave account. An option certificate will be uploaded to your account on the portal at www.signalshares.com. This will show your monthly savings amount and the number of shares you can buy at the end of the 3 or 5 years. You can access annual statements for your savings account on the portal. You’ll receive a notification when your latest statement is available. For this reason, it is important to keep your email address and other contact details on the portal up-to-date.
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WHAT HAPPENS AT THE END? At the end of the 3 or 5 years you can: • Use your savings to buy Barratt shares at the discounted price agreed at the start; or • Take your savings out as cash. At the end of the 3 or 5 years, you will receive details of your choices and how to make them. This will have information on how to use your savings to buy and, if you want to, sell the shares. You will be able to do this on the portal. The share price can go down as well as up, and if it goes down you can still have all your savings back. You will have 6 months from the end of the 3 or 5 years to decide what to do.
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HERE’S AN EXAMPLE OF HOW IT MIGHT WORK You save £100 per month
The Option Price is set at £6.00 per share
After 3 years you’ve saved £3,600 and you will be able to buy 600 shares
Share price rises to £6.50
You buy 600 shares at £6.00 each and sell them for £6.50 each making £300 profit
or
Share price falls to £5.75
You buy 600 shares at £6.00 each and keep them
You take your money as cash
Please note, this is an example only; how much you make will depend on the Option Price set at the start of the Scheme and the share price at the end of the Scheme.
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WHAT DATES DO I NEED TO WATCH OUT FOR?
10 March to 16 March 2020
17 March 2020
02 April 2020 Invitation period ends (at 5pm)
Invitation period starts
Option Price set
30 April 2020
June salary
Option certificate uploaded to the Share Portal
First deduction taken from your pay
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01 July 2020 Contract start date
HOW DO I APPLY? Online You can apply by visiting www.signalshares.com. You will receive an email confirmation after you have applied.
Already registered? You can log in using your username and password. On the homepage, click on the ‘Apply for a share plan’ link and follow the on-screen instructions.
First time? Select ‘Register’ from the menu bar. You will need your Investor Code from the top of your invitation in order to register. Please keep it safe for future use, as it will not change. You can set up your username (this can be anything you wish), password and memorable word for accessing your account in the future.
Phone Call 0800 011 4175 and follow the instructions to apply (lines are open 24 hours). Make a note of your unique reference number given to you at the end of the call. The lines will open on 17 March 2020 and close at 5pm on Thursday 02 April 2020. You will need your Investor Code to register, this can be found on your invitation. If you need additional help completing your application, please call the Barratt Sharesave helpline on 0371 664 03302.
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WHAT HAPPENS IF I LEAVE? If you take a period of leave (e.g. maternity, paternity, shared parental or sick leave)
You will receive a letter from Link after you have left, explaining your choices. This should arrive within four weeks of your leaving date. If you do not receive it, please contact the Sharesave Helpline on 0371 664 03302.
Payments will continue to be automatically deducted from your pay as long as your leave is paid. If you take any unpaid leave you can:
If you leave Barratt before the end of the 3 or 5 years due to redundancy, retirement, or are unable to work due to disability or injury you can choose to:
• Set up your own standing order directly with Link to continue making payments; or • Take a break from saving for up to 12 months and make the payments up at a later date. You won’t be able to buy any shares until all payments have been made. The date at which you can buy the shares will be delayed by 1 month for every payment you miss.
• Buy shares using the money you have saved. You must buy the shares within 6 months of leaving. You can carry on saving during this time by setting up a standing order directly with Link; or • Take out the money you have saved; or
Please note, any missed payments can only be made up via monthly contributions. A lump sum payment will not be acceptable.
• Carry on saving until the end of the Sharesave Scheme by setting up a standing order with Link. If you have more than 6 months until the Scheme ends, you won’t be able to buy shares and will have to take your savings as cash.
If you die Your representatives can either:
If you leave the Company before the end of the 3 or 5 years for any other reason
• Buy a reduced number of shares based on the amount you’ve saved. They will have 12 months from the date of death to do this, after which they will not be able to buy the shares; or
You will be able to take out the money you have saved, but you will not be able to buy the shares.
• Take your savings as cash. If you require any further information, please contact the Sharesave Helpline on 0371 664 03302.
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IS THERE ANYTHING ELSE I NEED TO KNOW? What happens if I change my mind?
I am a weekly paid employee. How do I calculate my monthly payments?
You can stop payments at any time and ask for your savings back. You will not be able to buy the shares at the Option Price. You can do this by going on to the portal or by sending a letter to Link.
You will make 144 weekly payments over 3 years or 240 weekly payments over 5 years. Multiply the amount you want to save each week by 4 to calculate your monthly payment when you make the application.
You cannot change the amount you save each month after the application deadline. If you change your mind about the amount you want to save before the deadline, please call the Sharesave Helpline on 0371 664 03302.
What happens if I need to stop making payments? If you find you cannot afford to save for a while, you can stop making payments for up to a maximum 12 months during the 3 or 5 years. You will need to make up any payments you have missed, and the date at which you can buy the shares will be delayed by 1 month for every payment you miss.
What happens if there aren’t enough shares? The total number of shares the Company can use for the 2020 Sharesave Scheme is fixed. If applications are received for more shares than are available, all applications will be reduced in proportion. This means you’ll save less each month and will be able to buy fewer shares at the Option Price at the end. You’ll be notified if this happens.
If you go more than 12 months without making a payment you will not be able to buy the shares at the Option Price. You will be able to take your savings back.
What if I am employed on an ‘as and when’ basis? If you’re employed on an ‘as and when’ basis you can still join the Scheme. You will still need to make 36 payments if you are in the 3 year Scheme or 60 payments in the 5 year Scheme from your salary. Please refer to the question above for information about missing payments.
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IS THERE ANYTHING ELSE I NEED TO KNOW? What if I am already making Sharesave payments?
Do I have to pay any tax?
Your total payments across all schemes can’t be more than £500. This includes any Sharesave schemes you are paying in to with another employer. For example, if you currently pay £100 into one scheme and £100 into another, you can only pay up to £300 into the 2020 Sharesave. You do not need to include payments you are making into the 2015 5-year or the 2017 3-year Sharesave (as long as you haven’t missed any payments) as these payments will finish before your new payments start.
Currently no income tax needs to be paid when you use your savings to buy the shares. You may need to pay capital gains tax when you sell the shares, depending on how much profit you make and on your personal circumstances. You will not have any additional tax to pay if you take your savings back at any time. References to tax are for guidance only, and we cannot give you advice. You can visit www.gov.uk/tax-employee-share-schemes/ save-as-you-earn-saye for more information and if you’re still unsure about anything, get advice from a professional tax adviser.
Who runs Sharesave?
Important information
Link Asset Services administer Sharesave for Barratt. You can contact them on the Sharesave Helpline with any queries on 0371 664 03302.
You cannot transfer, assign or take a charge on your option to buy shares. You should be aware that the price of shares can go down as well as up.
Are my savings safe? Your savings are covered by The Financial Services Compensation Scheme (FSCS) up to the compensation limit (currently £85,000). Your savings will be held by Lloyds Bank1, and will be added to any other savings you have with Lloyds Bank1 to calculate the limit.
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CONTACT US 1
The Registered Office of Lloyds Bank plc is 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278. Authorisation can be checked on the Financial Services Register at www.fca.org.uk. Eligible deposits with Lloyds Bank plc are protected by the Financial Services Compensation Scheme (FSCS). Lloyds Bank plc is covered by the Financial Ombudsman Service (FOS).
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Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. Lines are open 9am - 5.30pm Monday - Friday excluding public holidays in England and Wales.
If you have any other questions, please contact us.
Sharesave Helpline: 0371 664 03302
Address: The Link Sharesave Team PO Box 527 Darlington DL1 9YF
Disclaimer The purpose of this booklet is to explain how the Sharesave Scheme works so you can decide whether to participate. It is a general guide only. The full Scheme rules are available on request from the Sharesave Helpline and the Company Secretary. Where there is a conflict between this booklet, the Scheme rules and legislation, the rules and legislation will prevail. Changes in legislation may affect the guidance given in this booklet. Link Asset Services is a trading name of Link Market Services Trustees Limited, which is authorised and regulated by the Financial Conduct Authority. Not all share plans are regulated. Registered office: The Registry, 34 Beckenham Road, Beckenham, Kent, BR3 4TU. Registered in England and Wales No. 2729260. www.linkassetservices.com
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