Moving to another country can sometimes have an effect on any share plans in which you participate.
The grant, exercise and sale of shares whilst working, or having worked overseas, may trigger tax and social security liabilities in home and host countries. There may be withholding obligations for Diageo and reporting requirements for you. Please see the following document:
IA Equity Taxation (PDF 1344KB)
To help you understand these obligations, EY will provide you with details of the tax and policy implications of your equity income in your tax briefings.
If you are in doubt over the implications, please contact the Diageo Global Mobility Team and they will be able to assist further. Please note that the tax vendor is not authorised to provide personal tax planning advice on equity income.
Please note that once your International Assignment has concluded there may be ongoing tax implications in respect of your share plan holding. Please contact your Global Mobility Advisor for further information.
In the event of any conflict between this information, the rules of the relevant share plan(s) and Diageo’s Global Mobility Policies, the rules of the plan, Diageo’s Global Mobility Policies and applicable legislation will prevail.
Executive Share Plans
If you are currently on assignment, you are tax equalised on your Diageo equity income, meaning that you should pay the same amount of income tax and social security as you would have had you not been on assignment.
Under Tax Equalisation, your final income tax and social security liability should be no more or less had you continued living and working in your home country and the hypothetical tax and social security deducted from you should reflect this position. Diageo will settle any other tax liabilities that arise in home and host countries.
It is important to distinguish Diageo stock income from exercises of Diageo stock options and releases of shares, etc from the sale of Diageo shares which are regarded as income.
Please note that once your International Assignment has concluded there may be ongoing tax implications in respect of your share plan holding. Please contact your Global Mobility Advisor for further information.
Share Incentive Plan
The Share Incentive Plan (SIP) is an HM Revenue & Customs approved plan that includes Freeshares, Sharepurchase and Sharematch. It is only open to employees based in the UK who are subject to UK income tax. If you relocate to another country and become subject to different international tax regulations, you may no longer be able to participate in SIP.
Sharepurchase/Sharematch: contributions will be suspended. Upon returning to the UK, you can opt to resume your contributions on your EquatePlus portal account as these will not restart automatically. Your existing Sharepurchase/Sharematch shares will remain in the SIP plan according to SIP Rules, with any future taxable sales processed through UK payroll. Therefore, it's vital to maintain an active UK bank account to receive funds.
Freeshares: The Diageo Board may grant discretion for the award of Freeshares, providing you remain on a home country contract. Your existing Freeshares will remain in the SIP plan in line with the SIP Rules and any future taxable sales will continue to be processed through UK payroll.
You may be eligible to participate in a similar international plan, if there is an offering in the country where you are based.
By staying informed and proactive about your SIP shares as a globally mobile employee, you can effectively manage your shareholding and navigate potential tax and regulatory challenges associated with international relocation.
Please note that once your International Assignment has concluded there may be ongoing tax implications in respect of your share plan holding. Please contact your Global Mobility Advisor for further information.
UK Sharesave
If you participate in Sharesave, your continued participation in the Plan will depend on the terms of your International Assignment.
If you move to a country outside the UK and continue to be employed by a wholly owned subsidiary of Diageo or a Diageo controlled Joint Venture then you will have three choices:-
- Continue Saving: You can continue saving into your Sharesave plan by setting up a standing order. For more information about this option, please reach out to Computershare on 0370 707 1663.
- Suspend contributions: You have the option to suspend your contributions for up to 12 months. However, suspending your payments will delay your maturity date. If you participate in multiple contracts, you must suspend each one separately. It’s Important to note that if you miss more than 12 payments, your Sharesave plan will be cancelled and your option to purchase shares will lapse. Any missed payments must be made up at the end of the savings period, resulting in a delayed maturity. To suspend your payments please contact diageoshareplans@diageo.com.
- Cancel Sharesave: If you decide to cancel your Sharesave plan, you can do so by logging into your EquatePlus portal account, selecting 'Sharesave Close of Account' link and click on each Sharesave plan you wish to cancel.
If you relocate outside of the UK and become employed by a Joint Venture company not controlled by Diageo, you will no longer be able to participate in the Sharesave plan. In such a case, you must log into your EquatePlus portal account, select 'Sharesave Close of Account' link, and click on each Sharesave plan you wish to cancel.
Please note that Diageo does not currently offer an International Sharesave Plan. Additionally, upon conclusion of your International Assignment, there may be ongoing tax implications regarding your share plan holding. Please contact your Global Mobility Advisor for further information on this matter.
Irish Profitshare & Salary Foregone
If you participate in Profitshare and Salary Foregone, your continued participation in the Plan will depend on the terms of your International Assignment.
Profitshare or Salary Foregone shares already held will typically remain in Trust until their vesting period elapses, in accordance with the plans terms. Once vested, these shares are usually transferred to you automatically and held in the Diageo Sharestore. You can manage shares held in the Share Plan Account (SPA) through your EquatePlus portal account, enabling you to sell or transfer them at your convenience. This arrangement affords flexibility and control over your Profitshare or Salary Foregone holdings while you are on an international assignment.
Irish Sharesave
If you participate in Sharesave, your continued participation in the Plan will depend on the terms of your International Assignment.
If you move to a country outside Ireland and continue to be employed by a wholly owned subsidiary of Diageo or a Diageo controlled Joint Venture then you will have three choices:-
- Continue Saving: You can continue saving into your Sharesave plan by setting up a standing order. For more information about this option, please reach out to Shareworks on +44 207 425 1075.
- Suspend contributions: You have the option to suspend your contributions for up to 6 months through your Shareworks portal account. However, suspending your payments will delay your maturity date. If you participate in multiple contracts, you must suspend each one separately. It’s Important to note that if you miss more than 6 payments, your Sharesave plan will be cancelled and your option to purchase shares will lapse. Any missed payments must be made up at the end of the savings period, resulting in a delayed maturity.
- Cancel Sharesave: If you decide to cancel your Sharesave plan, you can do so by logging into your Shareworks portal account, locate the Sharesave plan you wish to cancel and click on the 'Cancel Contract' link.
If you relocate outside of Ireland and become employed by a Joint Venture company not controlled by Diageo, you will no longer be able to participate in the Sharesave plan. In such a case, you must log into your Shareworks portal account, locate the Sharesave plan you wish to cancel and click on the 'Cancel Contract' link to receive a refund of your savings.
Please note that Diageo does not currently offer an International Sharesave Plan. Additionally, upon conclusion of your International Assignment, there may be ongoing tax implications regarding your share plan holding. Please contact your Global Mobility Advisor for further information on this matter.