To be eligible an employee must have been employed by Costain on or before 16 August 2024 and be subject to UK income tax and national insurance contributions.
If all the applications received from eligible employees exceed the number of shares available for this grant (4 million shares), the Company will have to ‘scale down’ the options granted to employees on a proportional basis. This means that the number of shares under each application and the amount saved each month or week would be reduced accordingly.
The Board of Directors determined the number of 4 million shares for this year's grant taking into account a number of factors, including overall availability of shares for employee share plan purposes.
Whether scaling down is required will only be known after the application deadline has passed and the total number of applications is known. It will not be possible to advise in advance of the application deadline if a scale down will be necessary. You will receive notification of the number of options granted to you and the amount of your savings before your first contributions are taken from pay and this will confirm if any scaling down has taken place.
While the HMRC maximum savings limit is £500 per month across all sharesave plans, companies can set their own limit which many do to ensure the plan is affordable and does not exceed permitted share dilution limits. As last year, the Company has set the maximum savings limit at £100 per month. This will increase the number of employees who will be able to save the maximum permitted amount by the Company before any scaling down. It will also reduce the amount of scaling down required (if any).
No. Once your savings contract has started, you cannot change the amount you save.
You can suspend up to twelve contributions, and each monthly contribution missed will result in the maturity of your savings contract being postponed by one month to allow you to make up the payment(s) at the end of your savings period. The most you can miss is the equivalent of twelve monthly payments – these can be separate periods of one or more months or a single twelve-month period.
If you go on maternity/parental leave or other long term absence, you can make arrangements to continue contributing by standing order by contacting EQ on 0371 384 2979. You can also contact them by email at myshareplan@equiniti.com.
You can stop saving at any time during the savings period and take out all your savings and interest, if applicable. There are no charges or penalties. However, if you take your savings before the end of the three-year savings period you’ll lose the chance to buy shares at the discounted Option Price.
The amount of interest for Sharesave is set by the Government (HMRC) at the start of the savings contract. The interest rate applicable to Sharesave 2024 is equivalent to 1.1 x one monthly contribution on the maturity date.
No. Once you have started a Sharesave contract the returns are guaranteed. However, future invitations may be offered on different terms.
If you close your Sharesave account before the end of the three-year savings period, you’ll receive an early leaver interest rate of 1.33% on the money you saved, as long as EQ have received 12 monthly contributions and your account has been open for 12 months. This interest will be tax-free.
The end of your savings period is called maturity. At maturity you can either buy shares or take your money in cash. More information will be sent to you when your savings reach maturity.
The value of shares and the income from them can go down as well as up. With Sharesave you have a safety net, because if the Costain Group PLC share price at the end of the savings contract is less than the Option Price, you can take your savings as cash instead of buying shares. You do not need to make a decision until the end of the saving period.
Savings are taken from net pay. There is no income tax or national insurance contributions payable on any gains made.
Capital Gains Tax (CGT) may apply if you sell your shares and the gain is more than the CGT limit. The gain per share is the difference between the Option Price and the price at which the shares are sold. The current CGT limit is £3,000 for tax year 2024/25. If you’re unsure if this exemption will be available to you (for example if you have sold other assets during the same tax year that you sell your shares) or if you hold other shares including in Costain Group PLC, you should take independent financial advice.
If you leave Costain’s employment at any time during your savings period because you’re made redundant, TUPE transferred (Transfer of Undertakings (Protection of Employment) Regulations 2006 applies), injured, disabled or if you retire, you’ll be able to use your savings to buy a reduced number of Costain shares within six months of leaving if you wish, and you can continue saving privately via EQ during that period. Alternatively, you can continue saving to the end of your savings contract to receive the bonus, but you will no longer be eligible to buy Costain shares if you choose to not exercise your option and buy shares within six months of leaving.
If you leave through resignation or dismissal you’ll get all your savings back with any interest due, or you may continue saving to the end of your savings contract to receive the bonus. However, you’ll no longer be eligible to buy Costain shares at the Option Price.
Yes, however you will finish making your payments before the monthly paid employees. Payroll will stop payments when you have made 144 weekly payments.
Your savings, which are held with Lloyds Bank plc, are your own and are covered by the Financial Services Compensation Scheme (‘FSCS’). The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. In respect of deposits, an eligible depositor is entitled to claim up to £85,000. For further information about the scheme refer to the FSCS information sheet, FSCS website www.fscs.org.uk or call the FSCS on telephone number 020 7741 4100 or 0800 678 1100. Alternatively, log onto www.lloydsbank.com for further information about the compensation scheme.
The Board of Directors will decide each year whether to make a new invitation under Sharesave based on a number of factors including share price, costs of offering the plan and overall availability of shares for employee share plan purposes.