DIAGEO SHARESAVE MATURITY 2017 Share in our success. YBS Share Plans Year Sharesave Plan

Transcription

1 DIAGEO SHARESAVE MATURITY 2017 Share in our success YBS Share Plans Year Sharesave Plan

2 SHARESAVE Maturity The year option price is Your Diageo plc 2014 Sharesave Plan will mature on 1 December 2017*. In this guide you ll find everything you need to know about your maturing Sharesave account, the choices available to you and how to provide your instructions to YBS Share Plans. You now need to decide what you d like to do with the savings in your account and your choices, are as follows:- Exercise your option at the option price and Keep all (your shares will be transferred into your Sharestore account). Exercise your option at the option price and choose to sell some or all of your shares on the Maturity Date, 1 December Close your account and receive a refund of your savings You don t have to make your choice straight away, you ll have six months from the Maturity Date, after which time your option to buy shares at the fixed Option Price will lapse. If you are not sure of your choices or have any further queries please contact the YBS Share Plans Helpline on All contact details are contained on the Where do I go for help? section. *If you have missed any payments, your maturity date will be deferred by the number of months you have missed and the maturity date shown will reflect this. KEY DATES 27 NOV 2017 Your maturity instructions must be received no later than this to be included in the first exercise 01 DEC 2017 Maturity Date* 01 JUNE 2018 Share options lapse

3 YOUR Choices in detail 1. Exercise your option at the option price and `keep all (your shares will be transferred into your Sharestore account) Your shares will be held in the Diageo Sharestore on your behalf (unless your current address is outside the EEA in these circumstances you will receive a Share Certificate). You can sell your shares at any time, after 4 December 2017 through Capita Share Dealing Services at or by telephoning and quoting your Share Reference Number (which is the same as your USER ID for and your National Insurance Number (found on your payslip). For more detailed information and Sharestore terms and conditions log onto

4 YOUR Choices in detail CONTINUED Exercise your option at the option price and sell some or all of your shares on 1 December 2017 This choice will be available up to 5.30pm (GMT) on 27 November 2017 to all option holders whose savings contracts mature on 1 December After this date the choices available will be to keep (hold all shares) or take a refund of savings only. Capita will charge you a fee of 0.25% of the total trade value (subject to a minimum fee of 15) for the sale of your shares, this amount will be deducted from your sale proceeds and the balance paid directly into the bank account advised by you when you input your maturity instruction. Capita will release your sale proceeds three business days after the date your shares are sold, please allow a further 3-5 working days for the payment to credit your account. A contract note confirming details of the sale will be posted to the address held on your record. If you choose to sell only some of your shares, the remaining shares will be transferred into the Diageo Sharestore and can be sold any time on or after 4 December The sale of your shares will be subject to the Capita Sale Facility Terms and Conditions which can be found when you log in to Exercise your options. Please take the time to read this document as you will need to accept the Terms and Conditions before proceeding with this choice. Important You cannot set a limit price at which to sell your shares. If you input a valid sale instruction on or before 5.30pm (GMT) on 27 November, your shares will be sold in accordance with the Capita sale facility terms and conditions.

5 YOUR Choices in detail CONTINUED Take a refund of the savings in your Sharesave account and not buy any shares at the fixed Option Price You don t have to purchase Diageo shares. If you prefer, you can simply request a refund of your savings by cheque to your home address. You will have no Income Tax or National Insurance Contributions to pay. If you wish to close your account and take a full refund of contributions call the YBS Share Plans Helpline on and close your account over the phone. If you choose to close your account and take back your savings, you still retain the right to purchase shares at the fixed Option Price during the 6 months immediately following your Maturity Date. If you decide to follow this course of action you ll need to call the YBS Share Plans Helpline to make the necessary arrangements.

6 how to make your choices Go online You now have the option to provide your maturity instructions using the secure online facility provided by YBS Share Plans by visiting Already registered? To login you will need your Customer Number. Once you ve logged in you ll need to select the maturing Sharesave account in the account view section (please make sure the account number you select matches the account number stated on your Maturity Instruction Letter), click on Closure Options and follow the onscreen instructions to complete the share closure process. You ll receive an confirmation once you ve successfully submitted your instructions. Not registered? You ll need to register your account online before you re able to provide your instructions. You ll need your Sharesave account number included on your maturity letter and will be asked to provide some security information. Registration will only take a few minutes of your time. Once registered, your login details will be sent to you through the post and you ll then be able to provide your instructions. To input your instructions you may require some or all of the following: YBS CUSTOMER NUMBER This will have been sent to you if you have previously registered your account online. If you have lost this please call the YBS Share Plans Helpline on using a phone number that is registered to your online account. YBS ACCOUNT NUMBER This is included on the maturity letter sent to your home address. BANK DETAILS If you are choosing to sell all or part of your shares. DIAGEO SHARE REFERENCE NUMBER This is the same number as your USER ID logging on to your account at It can be found on most correspondence from Shareplans and can also be referred to as your Investor Code.

7 Your questions answered WHEN DO I HAVE TO COMPLETE MY INSTRUCTIONS IF I WANT TO BUY AND/OR SELL MY SHARES ON 1 DECEMBER 2017? Your instruction must be input and confirmed by 5.30pm GMT on 27 November WHEN WILL MY INSTRUCTION BE PROCESSED? If your instruction is received by (5.30pm GMT) on 27 November 2017 we will aim to exercise your instruction and if you wish, sell your shares on 1 December Thereafter, processing will be carried out on a weekly basis and provided we have received your valid instruction by 5.00pm (GMT) on the Friday (the Weekly Cut-Off Point ) YBS Share Plans will aim to exercise your instruction on the following Wednesday. Please note the sale facility is for one day only, on 1 December If you want to sell any shares after the first day sale service, you should sell following the Sharestore sale process outlined under choice 1 Exercise your option at the option price and keep some or all of your shares in your Diageo Sharestore on page 2 of this guide. Any shares transferred to your Sharestore account as part of the first delivery (1 December 2017), will be available to sell on or after 4 December WHAT IF MY MATURITY DATE IS DELAYED? If you have missed a contribution or contributions into your Sharesave Account, you may have the right to exercise your option and, if you wish transfer your shares, after 31 May For any such instructions accepted after 31 May 2018, provided we have received your valid instruction by 5.00 pm (GMT) on a Friday we will aim to exercise your instruction on the following Wednesday. HOW MUCH DOES IT COST TO BUY AND SELL MY SHARES ON 1 DECEMBER 2017? Shares will be purchased at the option price of There is no charge to exercise your option and purchase your shares. However if you choose the one day sale facility, Capita will charge you 0.25% of the total trade value (subject to a minimum fee of 15) for the sale of your shares and this will be deducted from your sale proceeds before the balance is paid directly into the bank details you input when requesting the sale. HOW WILL I RECEIVE MY SALE PROCEEDS? Capita will release your sale proceeds three business days after the date your shares are sold and the money should be in your nominated bank account another 2-3 days after this. A contract note confirming details of the sale will be posted to the address held by YBS Share Plans.

8 Your questions answered CONTINUED... WHAT HAPPENS TO THE SMALL AMOUNT OF CASH LEFT OVER AFTER I PURCHASE THE SHARES (RESIDUAL)? If you decide to exercise your option there may be a small residual sum left over which cannot purchase a whole share, you have 2 choices: Donate the amount to charity. Diageo s nominated charity for the 2017 Maturity is Wateraid UK. For more information please visit their website Have a cheque for this amount sent to your home address. HOW DO I SELL MY SHARES IN THE FUTURE IF I HAVE CHOSEN TO KEEP ALL? Your shares will be held in your Sharestore account and can be sold by contacting Capita Share Dealing Services once they are in there. For full information on how to sell your Sharestore shares please log onto our website and click on the Sharestore link at the top of the screen. WHAT HAPPENS IF I HAVE MISSED ANY PAYMENTS? For every payment missed, the maturity date of your plan will be deferred by one month and you will continue to have deductions from your pay until you have completed your savings plan, for a maximum of 6 payments. WHAT HAPPENS IF I LEAVE DIAGEO? For full information on what will happen if you leave Diageo please refer to the Sharesave leavers factsheet on our website or contact the YBS Share Plans Helpline on WHAT TAX WILL I PAY? Under current legislation there s no Income Tax to pay as a result of buying your shares or taking your savings. You may however have to pay Capital Gains Tax (CGT) if you sell your shares at a profit (this is the difference between the cost of buying your shares and the price you sell them for minus any sale expenses). HM Revenue & Customs ( HMRC ) currently allows you to make a certain amount of capital gains in each tax year without being taxed. If your gain (which must include any other profit you ve made within the tax year) exceeds the annual exemption limit, you ll have to pay tax on any gain above this limit. The CGT limit for the 2017/2018 tax year is 11,300. Further information can be found on the HMRC website (

9 Your questions answered CONTINUED... WHAT HAPPENS IF I DO NOTHING? Your choice to buy the shares at the option price will lapse 6 months after your maturity date. You will be entitled to a full refund of your savings only. HOW DO I FIND OUT MORE? If you need more information about your Diageo Sharesave Plan please call the YBS Share Plans Helpline on or visit our website and click on the Sharesave link at the top of the screen. WHO SHOULD I CONTACT WITH ANY TECHNICAL ISSUES? If you are experiencing any issues logging onto the YBS Share Plans website or have any queries regarding the online functionality please contact the YBS Share Plans Helpline on IMPORTANT INFORMATION FOR US TAXPAYERS PARTICIPATING IN THE UK SHARESAVE PLAN. The following information is applicable to you if you are currently or if you become a US taxpayer (US taxpayers include US citizens and green card holders, whether living in the US or not, and non-us citizens who are living in the US and are subject to US tax). As a participant in the Diageo UK Sharesave plan, you could become liable to US tax penalties under Section 409A of the US Internal Revenue Code. We have amended the UK Sharesave plan to bring UK Sharesave options held by US taxpayers within an exemption under Section 409A. The exemption applies if options held by US taxpayers are exercised by 15 March in the year after the year that options first become exercisable. Please note that this means that if you are or become a US taxpayer, you may not be able to take advantage of the full 6 month exercise period. For example, if you currently participate in Sharesave and you are in a Plan that becomes exercisable on 1 December 2017 you will need to exercise this plan by 15 March Should you require any further information regarding any possible tax implications you may wish to consult an independent financial adviser.

10 IMPORTANT information Share Certificates If you wish to receive a share certificate (instead of transferring your shares to the Diageo Sharestore) or wish to transfer the shares to another person contact the Shares Office. NISA S You may wish to consider transferring your shares into an Individual Savings Account (NISA). If you are considering this you should select Keep All from the drop down menu on the website. Once your shares have been deposited into your Diageo Sharestore account you then have 90 days to select and transfer the shares to your preferred NISA provider. You will need to request a share certificate for the amount of shares you wish to transfer to your NISA. You can do this by downloading a form from Please remember that share prices can go down as well as up, it is important that you make yourself aware of the current market price of a Diageo plc share when deciding whether or not to exercise your option to buy shares at the option price. If you are in any doubt about the suitability of any action, please contact an Independent Financial Advisor. If your instruction is input after 5.30pm (GMT) on 27 November 2017 you should allow up to 10 business days from receipt of your request for your exercise instructions to be processed. It must be emphasised that this document is only a guide and if you require any financial advice you should consult an independent financial adviser. In the event of any conflict between this document and the rules of the plan, the rules of the plan will prevail.

11 IMPORTANT information In the event that YBS Share Plans receive my instructions to purchase or sell shares and the Diageo share price is lower than the option price of at the time of closure, then YBS Share Plans reserve the right to cancel my instruction, close my Sharesave account and return my savings to me. In these circumstances my option remains exercisable for a period of six months following my Maturity Date. No information contained within this document or any accompanying document should be taken as providing any advice or as a recommendation to Exercise or not to Exercise your Option or, having exercised, to sell or not to sell your shares the choice is yours. Neither Diageo, YBS Share Plans or Capita Sharedealing can advise you on the best course of action for you in your particular circumstances. Tax rules and legislation can change. Tax relief, which is referred to in this document, are those currently available and will depend upon your individual circumstances. If you are in any doubt as to the legal, financial or taxation implications (including any Capital Gains Tax considerations and the collection of such taxes) for you of the Exercise of Options, and/or the subsequent sale of shares, or the suitability of the maturity share dealing service, you should seek the advice of a qualified independent Financial Adviser duly authorised under the Financial Services and Markets Act Please remember that the price of shares, and the income from them, can go down as well as up, and that you may not recover the amount originally invested. It is advisable to keep copies of all documentation sent to YBS Share Plans and Diageo in relation to the exercise of your Option as you may need to refer to this information when completing future tax returns.

12 Where do I go for help? Diageo CALL THE YBS SHARE PLANS HELPLINE Shares Office, Edinburgh Park 5 Lochside Way, Edinburgh EH12 9DT Tel: The.Registrar@Diageo.com Lines are open 8.30am to 5.30pm Monday to Friday and 9.00am to 1.00pm on Saturday.

13 The Financial Services Compensation Scheme (FSCS) Important information about compensation arrangements Your eligible deposits with Yorkshire Building Society are protected up to a total of 85,000 by the Financial Services Compensation Scheme, the UK s deposit guarantee scheme. This limit is applied to the total of any deposits you have with the following: Yorkshire Building Society, Chelsea Building Society, Norwich & Peterborough Building Society and Egg. Offset deposits through our subsidiary Accord Mortgages Limited are held by Yorkshire Building Society on behalf of Accord. Any total deposits you hold above the 85,000 limit between these brands are unlikely to be covered. For further information please see section VI of the enclosed Sharesave Terms and Conditions. YBS Share Plans is part of Yorkshire Building Society. YBS Share Plans, Yorkshire House, Yorkshire Drive, Bradford, BD5 8LJ Tel: Fax: +44 (0) ybsshareplans.co.uk Yorkshire Building Society provides Share plan trustee and administration services, including deposit taking, in the UK and subject to English law and regulation. We are not responsible for Share plan deposits held by local savings carriers outside the UK. Yorkshire Building Society is a member of the Building Societies Association and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Yorkshire Building Society is entered in the Financial Services Register and its registration number is Head Office: Yorkshire House, Yorkshire Drive, Bradford, BD5 8LJ. In the event of any conflict between this document and the rules of the plan, the applicable legislation and/or rules of the plan will prevail. Yorkshire Building Society is a member of the Financial Ombudsman Service. Further details are available on request from the Society. All communications with Yorkshire Building Society may be monitored/ recorded to improve the quality of their service and for your protection and security. Calls to 03 numbers are charged at the same standard network rate as 01 or 02 landline numbers, even when calling from a mobile. YBM