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Pound-cost-averaging with a cushion

The discounted share purchases were made in its Share Incentive Plan (or SIP, not to be confused with a Sipp or self-invested personal pension). In the plain vanilla version, employees elect to have company shares purchased on their behalf through monthly deductions from their gross pay. That’s where the discount comes in: for every £100 that basic-rate taxpayers are paid, the choice is between investing £100 or receiving £68 in cash (after 20 per cent basic income tax and 12 per cent national insurance contributions). 

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