You are eligible to join Sharesave provided you are a current employee of NEXT, Lipsy or NEXT Beauty, live in the UK and started your employment on or before the date of grant.
You are still able to join the Sharesave 2024 plan as long as your total contributions across all plans does not exceed £250 per month or £62.50 per week. Any request that will cause your total monthly savings to exceed the £250 limit will either be reduced to the limit or will be cancelled.
You will receive an option certificate after the invitation period closes confirming the number of shares you will be able to buy at the end of your chosen savings period. This number is calculated by taking the total amount you will save plus the bonus and dividing the the total by the option price.
PLEASE NOTE: If more shares are applied for than are available for Sharesave 2024, NEXT may need to scale back applications. If this happens, EQ will tell you what your amended monthly savings will be.
Sharesave is a risk-free savings plan. You will always get back at least the money you have saved during the savings period.
Your savings are held in a savings account with Lloyds Bank plc and are covered by the Financial Services Compensation Scheme.
You will not normally have to pay income tax or National Insurance contributions on any money you make buying these shares. You may have to pay Capital Gains Tax if you sell the shares. More information on this will be given at maturity.
For Sharesave plans launched from 18 August 2023, the bonus and early leaver interest rate will be linked to the Bank of England Base Rates, but at a lower rate. The rates are set by HMRC. At the end of the savings term, any bonus or early leaver interest due will be added to your savings.
For the 2024 plan, if you choose to save for 3 years, a tax-free bonus of 1.1 multiplied by your monthly contribution will be added to your savings. If you choose to save for 5 years, a tax-free bonus of 3.0 multiplied by your monthly contribution will be added to your savings.
At the end of the savings contract, you will have the chance to buy shares with the money you’ve saved plus the tax-free bonus, at the option price fixed at the beginning of your savings contract.
The level of bonus to be paid to you is fixed at the start of the savings contract and paid at the end of the savings contract. The bonus rates for the 2024 plan are based on the prevailing Bank of England Base Rate of 5% at the time of invitation which results in a bonus of 1.1 times monthly contributions for a 3-year and 3.0 times for a 5-year savings contract.
For example if you are saving £125 per month, the bonus would be £137.50 on a 3-year and £375 on a 5-year savings contract.
The early leaver interest rate is set at 1.33%.
No. Once you have started a Sharesave contract the bonus and early leaver interest rate are fixed. However, future invitations may be offered on different terms.
If you withdraw your savings before the completion of the Sharesave contract, you lose the option to buy shares. If repayment is made during the first year, all your savings will be repaid without interest. Otherwise, you'll receive an early leaver rate of 1.42 % for the 2023 plan or 1.33% for the 2024 plan on the money you've saved, as long as EQ have received 12 monthly contributions and your account has been open for at least 12 months.
You can log into your account by clicking 'Manage My Sharesave' at the top of the page.
You can suspend up to 12 monthly or 48 weekly contributions. Each missed contribution will result in the maturity of your savings contract being postponed 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 12 monthly payments or 48 weekly payments – these can be separate periods or a single period. For the period you are suspending it is important to ask Payroll (payroll_accounts@next.co.uk) to stop taking the deductions from your pay.
IMPORTANT: If you miss more than 12 monthly or 48 weekly payments, you will lose the option to buy shares and your savings will be returned to you.
No. Once your savings contract has started, you cannot change the amount you save or the length of time you have chosen to save for.
Yes, you can stop saving at any time. You are not locked in to Sharesave, and you can withdraw your savings at any time if you want to. However, if you withdraw your savings before the completion of the savings contract you lose the option to buy shares. It is important to ask the Payroll department to stop taking the deductions from your pay.
The discount historically applied to schemes where there is a lock-in period of 3+ years will not be available for years of assessment from 2022 onwards. The discount amount will therefore be the same as the taxable amount going forward. You should disclose your benefits in kind to Revenue Jersey, including any benefits arising in respect of Sharesave 2022 onwards. The gov.je website has further information, but you should seek independent financial advice if you are unsure.
It is important to ask the Payroll department to stop taking the contributions from your pay. Please email payroll_accounts@next.co.uk to stop contributions.
You can then request a refund of your savings by logging onto the Sharesave portal from the 'Manage my Sharesave' menu at the top of this page. Once in the portal, click on 'Cancel a Sharesave contract'.
If you leave NEXT at any time during your savings period because you retire, are made redundant, are injured or disabled or you are subject to a TUPE transfer, EQ will write to you with details of your choices.
As a guide, you will be able to:
If you resign or leave for any other reason not covered above, your option cannot be exercised and will lapse. However, you can continue to save to the end of your savings contract and take back your savings and bonus (if applicable) or, alternatively, you can stop saving and get all your money back with any interest due.
If you resign from NEXT on or after the third anniversary of the date of grant you will be able to exercise the option early. EQ will write to you about your choices.
While you continue to receive sufficient pay, your contributions will be deducted automatically. After that, you may continue to make contributions directly to EQ. Please contact the EQ Employee Helpline for further details on how to do this.
You can suspend up to 12 monthly or 48 weekly contributions. This will delay your maturity date until all contributions have been made. For further information see FAQ “What if I miss a payment or can't afford to save for a period of time?
If you die and your savings contract has not reached maturity, your personal representative(s) will be able to buy a reduced number of NEXT shares with the savings and any interest that may be due within twelve months of your death or withdraw your savings. They will not be able to continue saving.
If you die within six months following maturity and have not yet exercised your option, your personal representatives(s) will be able to buy NEXT shares within twelve months of the maturity date or withdraw your savings and bonus (if applicable).
Share prices can go down as well as up. If the NEXT share price at the end of the savings contract is less than the option price, you can choose to take your savings and bonus (if applicable) as cash instead of exercising your option to buy shares.
The end of your savings period is called maturity. At maturity, you will have the choice to buy NEXT shares at the option price or take back your savings and bonus. More information will be sent to you when your savings reach maturity.
NEXT will provide Equiniti with the bank account details into which your salary is paid. These are provided in October of your maturity year to facilitate payment of any sale proceeds.
If you change your bank details, or you are cancelling your plan and need to provide bank details for a refund of your savings, please contact payroll_accounts@next.co.uk.
At the end of the savings period, we will contact you to explain your choices. As long as you are still employed by NEXT, you can use your savings and bonus (if applicable) to buy NEXT shares at the option price. You will have six months in which to buy the shares following your maturity date. If you don't want to buy shares, you can just withdraw your savings and bonus.
Neither NEXT nor EQ can advise you what you should do. If you are in any doubt as to the action you should take, you should contact an Independent Financial Adviser.
If you have missed payments, salary deductions will continue until all payments have been made and the maturity date will be postponed by one month for each payment missed. Your last exercise date will be printed within your maturity letter.
This section should be read in conjunction with the Tax Guide available on the portal.
If you are a Jersey resident please see FAQ "If I live in Jersey, do I have to pay tax".
You may have to pay CGT on any gain you make when you sell your shares. A gain is broadly the difference between the cost of buying your shares when you exercise your share option and the price you sell them for. The calculation can be more complicated, particularly if you own other NEXT shares and don’t sell your shares at the same time you exercise your option.
HMRC currently allows you to make a certain level of capital gains in each tax year without being taxed. If your total gains in the tax year (which must include any other profit on the sale of taxable assets within the tax year) exceeds the current exemption limit, you will have to pay tax on any gain above this limit. The CGT limit is £3,000 for the 2024/2025 tax year.
It is possible for you to transfer some or all of your shares to your spouse/civil partner without incurring any CGT. In this scenario you can reduce (and possibly extinguish) your CGT liability by transferring shares to your spouse/civil partner prior to any sale. This is because each of you is entitled to your own CGT annual exemption. Further information is available at www.gov.uk/tax-sell-shares. If you acquire shares, income tax may be payable on any dividends you receive over the annual dividend allowance, which is £500 for the 2024/2025 tax year. In any circumstances where there is a tax liability, you are required to provide details to HMRC on a self assessment tax return.
If you are unsure about buying shares or your tax position, you should consult an Independent Financial Adviser. Tax rules and legislation can change. Tax relief referred to in this booklet is that which is currently available and will depend upon your individual circumstances.
Your request will be processed in accordance with the timetable.
If you have already left NEXT, you may not be able to exercise your share option.
If you are not sure please contact the EQ Share Plans Helpline on 0371 384 2170 or email myshareplan@equiniti.com or the Live Chat service via the Help Centre.
As a shareholder, you will be entitled to any dividend declared by NEXT plc as long as your shares are registered in your name as at the record date for any particular dividend payment. Shares can only be registered on the share register once they have been purchased. The record and payment dates for dividends can be found at: www.nextplc.co.uk/investors/financial-calendar.
The income derived from shares as well as the share price can fall as well as rise.
Once you or your spouse/civil partner has received your share certificate you can sell your shares at any time.
You can sell your shares through a broker of your choice or through EQ’s Shareview Dealing Service at www.shareview.co.uk or by telephone on 0371 384 2030. If you sell your shares through EQ’s Shareview service, you can specify a minimum sale price.
NEXT has negotiated a discounted commission rate for its employees of 1.25% on the first £50,000 and 0.2% thereafter, minimum £30 fee. To benefit from this discounted rate, you need to quote reference 32089 when submitting your instruction either online or by telephone.
After buying NEXT shares with your savings there may be some money left in your account which is called the residual balance. This will be less than the option price but could be as much as £48.11 for the 3 year plan and £64.52 for the 5 year plan.
If the residual balance is £5.00 or less you can donate it to NEXT's chosen charity, Motor Neurone Disease Association. If you would like to do this please select this option under the exercise residue choice on the portal when making your maturity instruction or tick the appropriate box on the maturity instruction form.
If you leave this box blank or the residual balance is greater than £5.00 then the residual balance will be returned to you by cheque.
A Stocks and Shares ISA allows you to hold your NEXT shares in a tax efficient manner as any growth in their value is free from Capital Gains Tax ('CGT'). You can transfer your shares into an ISA if your ISA provider agrees to hold the shares and you have sufficient headroom in your annual ISA allowance (£20,000 in the 2024/25 tax year). You may then sell your shares at a time and price of your choosing.
You have 90 days from your exercise date in which to transfer your shares into an ISA. If your ISA provider requires written confirmation from EQ you can download a Letter of Appropriation via the portal.
If you do not already have a Stocks and Shares ISA for this tax year, you may wish to consider the EQi Flexible Stocks and Shares ISA ('EQi ISA') provided by Equiniti. When submitting your maturity instruction, you can choose to open an EQi ISA and transfer your shares directly into this ISA.
If you choose to transfer your shares to the EQi ISA you will receive your new account login details via post to your registered address. The shares will normally be in your account 3-5 working days from the share purchase date. See timetable.
If you decide that you want to sell your shares immediately once they have been transferred in to the EQi ISA, you are free to do so. If there are lots of sale requests at the same time, these will be managed in a controlled way. There is no need to sell your shares immediately, your shares will be exempt from Capital Gains Tax as long as they are held in the EQi ISA.
Further information on this service including pricing can be found at www.EQi.co.uk or via the EQi ISA Helpline on 0345 300 0430.
