Young & Co's Brew. Holding(s) in Company
November 14 2016 - 4:01AM
UK Regulatory
TIDMYNGA
Young & Co.'s Brewery, P.L.C. (the "Company")
Profit sharing scheme - pre-retirement releases of shares
The Company announces that it is making arrangements that are
expected to result in a release to current and former employees of
all or the vast majority of the A ordinary shares of 12.5p each in
the Company's capital currently allocated to them under the
Company's profit sharing scheme. A full release would see 499,348
shares transferred out of the name of RBT II Trustees Limited to
the 72 individuals concerned. RBT II Trustees Limited is the
trustee of the Ram Brewery Trust II, an employee benefit trust
established by the Company. The release is expected to happen this
calendar year.
As explained in the notes below, the scheme is currently
effectively in 'run-off', with periodic releases of accrued
entitlements happening as and when a member reaches his or her
normal retirement date. HM Revenue & Customs has, however,
agreed that current and former employees may receive their accrued
entitlement under the scheme free of tax even though they may not
have reached their retirement date at the time of the release.
In the year ended 28 March 2016, the Company recognised a
GBP0.3m capital gains tax charge on the shares held in the scheme -
this was reflected within the Company's operating costs. This
charge is expected to be reduced considerably as a result of the
release.
Three of the Company's current directors have an accrued
entitlement under the scheme. They and their entitlements are as
follows: Patrick Dardis - 6,696 A shares, Torquil Sligo-Young -
31,412 A shares and Stephen Goodyear - 22,680 A shares.
Notes
The profit sharing scheme was introduced in 1964. Under the
rules of the scheme, in each year the Company's directors allocated
part of the Company's profits to the scheme to be divided amongst
eligible members. This amount was used to allocate shares to
eligible members, with those shares then generally being held in
trust until the relevant member's retirement or death. Members were
taxed on their allocation under normal employment tax rules at
their marginal rate of tax. Until retirement or death, members
received payments equivalent to the dividends that they would have
received had they actually bought the shares allocated to them. On
retirement or death, the member then received, free of tax, a cash
sum equivalent to the market value of his/her then accumulated
allocation of shares. This changed in 2005: on retirement or death,
the member instead received his/her accrued entitlement in shares,
free of tax, with him/her having the choice to retain the shares,
sell the shares, or retain some and sell some.
For the years ended 1 April 2006 and 31 March 2007, scheme
allocations were settled in actual shares (instead of 'notional'
shares), with members having actual shares transferred to them.
Members were then likewise free to retain the shares, sell the
shares, or retain some and sell some.
For the years ended 29 March 2008 and 28 March 2009, members
received a cash sum instead of actual shares or 'notional'
shares.
No further allocations have since been made under the
scheme.
In the year ended 29 March 2010, all then current and future
participants gave up their rights to receive an annual profit share
allocation under the scheme for that year and for future years. As
such, the scheme is effectively in 'run-off', with periodic
releases of accrued entitlements happening as and when a member
reaches his/her normal retirement date.
Anthony Schroeder
Company Secretary
Monday, 14 November 2016
Tel: 020 8875 7000
View source version on businesswire.com:
http://www.businesswire.com/news/home/20161114005557/en/
This information is provided by Business Wire
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