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:
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 paying UK income tax. If you move to another country and become subject to other international tax compliance, you may no longer be able to participate in SIP.
Sharepurchase/Sharematch: contributions will be suspended. When you return to the UK, you can elect to reinstate your contributions on your Shareworks portal account as these will not restart automatically. Your existing Sharepurchase/Sharematch shares will remain in the SIP plan in line with the SIP Rules.
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.
You may be eligible to participate in a similar international plan, if there is an offering in the country where you are based.
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:-
1. Continue to save into your Sharesave by standing order
For more information about this option, please contact Shareworks on 0808 234 9514 :
2. Suspend your contributions for up to 12 months.
You can suspend your Sharesave by logging into your Shareworks portal account. If you suspend your contributions, your maturity date will be delayed. If you participate in more than one contract, you will need to suspend each contract.
IMPORTANT: if you suspend and miss more than 12 payments, your sharesave will be cancelled and your options will lapse. Any payments that you miss will have to be made up at the end of your savings period, month for month, so your maturity date will be delayed.
3. Cancel your Sharesave
Log into your Shareworks portal account, locate the Sharesave plan you wish to cancel and click on the 'Cancel Contract' link.
If you move to a country outside the UK and become employed by a Joint Venture company not controlled by Diageo you can no longer participate in the plan. You will need to 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.
Diageo does not currently offer an International Sharesave Plan.
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.
Irish Profitshare & Salary Foregone
If you hold Profitshare or Salary Foregone shares these will continue to be held in Trust and released to you automatically on their third anniversary.
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 abroad and continue to be employed by a wholly owned subsidiary of Diageo or a Diageo controlled Joint Venture then you will have three choices:-
1. Continue to save into your Sharesave by standing order.
For more information about this option, please contact Shareworks on +44 207 425 1075 :
2. Suspend your contributions for up to 6 months
You can suspend your Sharesave by logging into your Shareworks portal account. If you suspend your contributions, your maturity date will be delayed. If you participate in more than one contract, you will need to suspend each contract.IMPORTANT: if you suspend more than 6 payments, your Sharesave will be cancelled and your options will lapse. Any payments that you miss will have to be made up at the end of your savings period, month for month, so your maturity date will be delayed.
3. Cancel your Sharesave
Log into your Shareworks portal account, locate the Sharesave plan you wish to cancel and click on the 'Cancel Contract' link.
If you move abroad and become employed by a Joint Venture company not controlled by Diageo you can no longer participate in the plan. You will need log into your Shareworks portal account, locate the Sharesave plan you wish to cancel and click on the 'Cancel Contract' link.
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.