It is possible for participants to withdraw their savings from the account at any time, but they lose the option to purchase shares when they do so. If an employee leaves the company during the life of the plan, depending upon the circumstances of their departure and the specific provisions set out in the scheme rules, they may be able to purchase a reduced number of shares. On taxation, the initial contributions are taken from net pay, so no additional deductions are made in the event of savings being withdrawn. As noted, the bonus received from the savings carrier at the end of the plan will be tax-free, so no charges apply on that either. If the participant chooses to exercise the options at the end of the contract, they will be liable for USC and PRSI, but only on the difference between the option price and the market value of the shares at that moment, assuming the latter is higher. If a participant then goes on to sell the shares for a profit, they may be liable for CGT, if the gain takes them above the exempt level for that tax year.
To win in the marketplace, you must first win in the workplace. - Douglas Conant, former CEO of the Campbell Soup Company
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