More than 9,200 Marks & Spencer employees are set to receive bumper share payouts as the high street giant revealed a jump in festive sales.
As its recovery continues, it said more than 9,200 staff members will reap the rewards from a share save scheme launched in January 2021.
Employees – mostly customer service assistants – who put in £150 a month into its 2020 share save scheme will gain more than £10,000.
Those who saved £50 a month stands to make more than £4,500. The money will be paid out on 1 February.
Reward: More than 9,200 M&S workers are set to receive bumper share payouts due to a boost from Christmas sales
It comes as M&S said it starts 2024 with a ‘spring in [its] step’ after sales jumped over Christmas and its food halls saw a record number of shoppers.
Like-for-like sales lifted by a record 9.9 per cent across its food arm, while comparable store sales were 4.8 per cent higher in its clothing and home division in the quarter to 30 December.
M&S rejoined the FTSE 100 Index last August after a four-year hiatus thanks to big share gains.
Chief executive Stuart Machin said: ‘We enter 2024 with a spring in our step, but clear eyed on the near-term challenges.’
The retailer added a note of caution over the outlook for 2024 though, saying: ‘As we enter the new year and 2024-25, expectations for economic growth remain uncertain, with consumer and geopolitical risks.
‘We also face additional cost increases from higher-than-anticipated wage and business rates-related cost inflation.
‘Nevertheless, the strong Christmas trading performance provides confidence that the results for the year will be consistent with market expectations.’
M&S staff warned over CGT
M&S employees who want to sell their shares may have to pay Capital Gains Tax.
A CGT liability can arise when you dispose of shares which are worth more when you sell them than when you acquired them. It’s the gain you make that’s taxed, not the amount of money you receive.
Over the years, the capital structure of Marks & Spencer has changed.
One notable event has occurred that may need to be considered when calculating any CGT-chargeable gain in relation to the company’s shares, according to an M&S share scheme guide.
This is the 2002 Share Consolidation and B Share Issue. Following a capital reorganisation in March 2002, the Inland Revenue confirmed the base cost for CGT purposes was 372.35p (81.43 per cent) for ordinary shares and 68.75p (18.57 per cent) for B shares.
The Government reduced the CGT Annual Exempt Amount from £12,300 to £6,000 from 6 April 2023 and announced it will reduce further to £3,000 from 6 April 2024.
This means employees will need to think about CGT when making decisions about holding and selling shares received through their employee share plans.
