2002 Share Scheme FAQ
The offer documentation sent to all employees contains a document with frequently asked questions. The following are additional questions that maybe of interest.
Please note the following points:
- This page is designed for information purposes only and is not engaged in rendering specific financial advice or professional services.
- Thales makes no warranties or representations about the accuracy of any information on this website or any other website to which it may be linked.
- The information contained in these pages is for general information only and Thales shall not be liable for the accuracy, quality or completeness of any information contained within this website.
What is the FCPE?
An 'Fonds Communde Placement d’Entreprise' is a Fund which holds shares on behalf of employee shareholders. To make this easier to explain for UK employees, in the case of the Classic plan it is like a nominee holder of shares whereas for the leveraged plan it is much more like a Unit Trust.
Will the available shares be allocated on a first come, first served basis?
No, the total shares requested will be totalled at the close of the registration period. If there is an over-subscription, (ie:more than 4.5million shares requested) all share requests will be reduced equitably until the subscription level matches the total amount available. Priority will be given to the Classic plan subscriptions and minimum subscriptions will be safeguarded.
Do I subscribe in Euros or pounds?
You specify an amount in pounds which will be converted to euros using the exchange rate calculated at the time that the subscription price is announced.
What is the minimum subscription?
The minimum subscription is €120 for each offer. This works out at approximately £75 but is dependent on the Euro exchange rate at the time of the offer. UK Corporate have set the minimum threshold to £80.
What is the maximum subscription?
The maximum subscription is 25% of your gross salary including any bonus payments. This value applies to the combination of the two offers and is validated by the Share simulator.
How can I ensure that I specify the minimum amount in pounds if I don't know the exchange rate?
To safeguard against this, any application received for £80 (the equivalent of €120 at the current exchange rate €0.63:£1) will be adjusted by the actual exchange rate fixed on or around 29 November to the pound sterling equivalent at that date to the minimum subscription.
On what day of the month will the monthly direct debit occur
7th of the month, commencing in January 2003.
When in April will payment be required?
3rd April 2003
What are the tax implications of the Classic offer?
There is no TAX or NI to pay on the 20% discount (because the shares are blocked for five years). The deferred terms of payment constitutes a loan and the interest not paid (deemed to be at 5% per annum) is taxable if the loan is £5000 or over. Note that this loan must include ALL interest-free loans from Thales eg. season-ticket loans. Income tax is paid under self-assessment (at either the basic or higher rate) on all the deemed interest (calculated monthly). Dividends are subject to UK tax at 10% (basic rate) or 32.5% (higher rate) - chargeable when the dividend is declared and declarable on your self-assessment tax form. There is no French witholding tax. At the end of the period (2 April 2007) capital gains tax (at 20% or 40%) is applicable on redemptions taken in cash subject to Business Asset Taper Relief (75% reduction if employee remains with company for the whole period) and the CGT exemption limit applicable at the end of the offer (currently first £7700 gain is exempt). Redemption in shares or units is not taxable.
What are the tax implications of the Leveraged offer?
There is no TAX or NI to pay on the discount of 20% because the investment is in units in the FCPE fund (inclusive of the 20% discount). The deferred terms of payment constitutes a loan and the interest not paid (deemed to be at 5% per annum) is taxable if the loan is £5000 or over. Note that this loan must include ALL interest-free loans from Thales eg. season-ticket loans. Income tax is paid under self-assessment (at either the basic or higher rate) on all the deemed interest (calculated monthly). No tax is payable on the dividends. At the end of the period (2 April 2007) capital gains tax (at 20% or 40%) is applicable on redemptions taken in cash subject to Non-Business Taper Relief (currently 10% after the whole period) and the CGT exemption limits applicable at the end of the offer (currently first £7700 gain is exempt) . The chargeable amount is the cash proceeds less the personal investment and gross dividends. Redemption in shares or units is not taxable.
Is taper relief applicable to the leveraged scheme is applied regardless of whether the employee is still employee by Thales group?
Taper relief applies in both cases, but if you remain as an employee then you qualify for "Business related taper relief" but if you don't then you qualify for "non-business related " taper relief or a combination of the two depending on date of leaving.
Can I retain the units in the Leveraged Scheme at the end od the period in April 2007, rather than taking the gain in cash?
You can transfer the units to the classic scheme but first need to realise the gain and then re-invest. You will become liable for tax charges applicable to the leveraged scheme.
How will I know what that my application has been received?
Thales has appointed Mourant plc to the role of Share Scheme administrators. They have pledged to acknowledge all correspondence received from you, the customers.
What do I do if I change any of my details (i.e. address, bank account, surname etc.) during the plan at any time?
Complete a change of circumstance form and send to HR immediately.
What could delay my application?
If you have not correctly and wholly completed your application form, your registration will not be processed. However, Mourant will make every attempt to contact you and ensure the missing data is supplied by yourself to them. Should the form still be incomplete by the 13th December, your application will be rejected. It would therefore be a good idea to double check the form before sending it, to ensure all the necessary information has been supplied and is correct.
How will I know what my final share allocation is?
Once the share allocation has been settled (in December), Mourant will notify you directly (in January 2003) of all details concerning your reserved shares.
When will the price of the shares available for purchase be known?
The final price of the shares to be purchased in this scheme will be determined on the 29th November, 2002. As soon as the price is determined and has been approved by the French Authorities, we will be notified.
Will I be able to pay for my share purchase through Payroll?
No, payment can be made only by direct debit directly from your bank account.
What if I change my mind, for whatever reason?
You will have a three day window in December during which you can cancel your subscription registration. These dates are 11th, 12th, 13th December.
What are the special conditions for early redemption?
The following situations have been identified:
- Compulsory Redundancy
- Retirement
- Death
- Injury
- Ill-health or disability early retirement
- Company leaves Thales group
