National Grid 2014 Annual Report Download - page 183

Strategic Report Corporate Governance Financial Statements Additional Information
US information reporting and backup withholding tax
Dividend payments made to US Holders and proceeds paid from
the sale, exchange, redemption or disposal of ADSs or ordinary
shares to US Holders may be subject to information reporting to
the US Internal Revenue Service (IRS). Such payments may be
subject to backup withholding taxes unless the holder (i) is a
corporation or other exempt recipient or (ii) provides a taxpayer
identification number on a properly completed IRS Form W-9
andcertifies that no loss of exemption from backup withholding
has occurred.
US Holders should consult their tax advisors regarding these
rulesand any other reporting obligations that may apply to the
ownership or disposition of ADSs or ordinary shares, including
reporting requirements related to the holding of certain foreign
financial assets.
UK inheritance tax
An individual who is domiciled in the US for the purposes of the
Estate Tax Convention and who is not a national of the UK for
thepurposes of the Estate Tax Convention will generally not be
subject to UK inheritance tax in respect of the ADSs or ordinary
shares on the individual’s death or on a gift of the ADSs or ordinary
shares during the individual’s lifetime, unless the ADSs or ordinary
shares are part of the business property of a permanent
establishment of the individual in the UK or pertain to a fixed
basein the UK of an individual who performs independent
personal services.
Special rules apply to ADSs or ordinary shares held in trust. In the
exceptional case where the ADSs or shares are subject both to UK
inheritance tax and to US federal gift or estate tax, the Estate Tax
Convention generally provides for the tax paid in the UK to be
credited against tax paid in the US.
The All-employee Share Plans
The all-employee share plans allow UK- or US-based employees
toparticipate in either HMRC (UK) or Internal Revenue Service
(US) approved plans. We believe by offering participation in such
plans, it encourages all employees (including Executive Directors)
to become shareholders in National Grid.
Sharesave
Employees resident in the UK are eligible to participate in the
Sharesave plan. Under this plan, participants may contribute
between £5 and £250 in total each month, for a fixed period
ofthree years, five years or both. Contributions are taken from
netsalary.
SIP
Employees resident in the UK are eligible to participate in theSIP.
Contributions up to £125 are deducted from participants’ gross
salary and used to purchase ordinary shares in National Grid each
month. The shares are placed in trust.
US Incentive Thrift Plans
Employees of National Grid’s US companies are eligible to
participate in the Thrift Plans, which are tax-advantaged savings
plans (commonly referred to as 401(k) plans). They are DC pension
plans that give participants the opportunity toinvest up to
applicable federal salary limits. The federal limits for calendar year
2013 are: for pre-tax contributions a maximum of 50% of salary
limited to $17,500 for those under the age of 50 and $23,000
forthose over50; for post-tax contributions, up to 15% of salary.
The total contributions (pre-tax and post-tax) are limited to the
lesser of50% of compensation or $51,000. For calendar year
2014, participants may invest up to the applicable federal salary
limits:for pre-tax contributions a maximum of 50% of salary
limitedto$17,500 for those under the age of 50 and $23,000
forthoseover 50; for post-tax contributions up to 15% of salary.
Thetotal contributions (pre-tax and post-tax) are limited to the
lesser of 50% of compensation or $52,000.
ESPP
Employees of National Grid’s US companies are eligible
toparticipate in the ESPP (commonly referred to as a 423(b) plan).
Eligible employees have the opportunity to purchase ADSs on
amonthly basis at a 15% discounted price. Under the plan
employees may contribute up to 20% of base pay each year up
toa maximum annual contribution of $18,888 to purchase ADSs
inNational Grid.
The offer and listing
Price history
The following table shows the highest and lowest intraday market
prices for our ordinary shares and ADSs for the periods indicated:
Ordinary share (pence) ADS ($)
High Low High Low
2013/14 849.50 711.0 0 70.07 55.16
2012/13 770.00 6 27. 0 0 58.33 49.55
2011/12 660.50 545.50 52.18 45.80
2010/111666.00 474.80 51.00 36.72
2009/10 685.50 511.0 0 56.59 38.25
2013/14 Q4 842.50 769.00 70.07 63.19
Q3 797. 50 725.16 65.39 58.85
Q2 817.75 727.4 5 61.59 55.30
Q1 849.50 711.0 0 64.56 55.16
2012/13 Q4 770.00 678.00 58.33 52.81
Q3 724.97 679.59 58.03 54.28
Q2 70 6.13 635.56 56.72 49.55
Q1 689.50 62 7.0 0 55.00 49.85
April 2014 844.50 806.22 71.23 67. 62
March 2014 839.50 808.00 69.86 67.0 2
February 2014 842.50 777.50 70.07 63.24
Januar y 2014 809.50 769.00 66.40 63.19
December 2013 797. 5 0 742.5 0 65.39 60.67
1. On 20 May 2010, we announced a 2 for 5 rights issue of 990,439,017 ordinary shares at
355 pence per share.
Unresolved SEC staff comments
There are no unresolved staff comments required to be reported.
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