do i have to pay tax on this

psychic_teabag

p00hsticks wrote: »

Are you sure about that in this particular scenario ? It's a long time since I had share options, but I had a feeling that in this case there might also be income tax implications if you exercised your options and/or sold the resulting shares without keeping them for a certain time period ?

Yeah, I think that's what happened in the scheme I was in... if you are given options at £2, and you exercise and sell at £3, then the company is considered to have given you £1 per share as a perk, and you owe income tax on that. If you buy and hold, you've still got to pay income tax on the £1 perk, but then you pay CGT on any gain over the actual buying price (£3 in this case) when you come to sell.

But it's presumably different if you own the shares already, rather than just having options. (And presumably different again if you had to pay for your options.)

lilmissclass

so what info do have to declare for someone to help me

John_Pierpoint

I would think that the company secretary is the person most likely to know the ins and outs of the company share save scheme. As you are a share holder remember he/she works for you.

(Does any one else agree with me that the idea of a share save scheme to promote employee interest, stability and loyalty to the company was was a good idea but it has been turned into a pain in the neck by all these tax rules; yet another example of the fiscal tail wagging the economic dog!).

kd1975

dzug1 wrote: »

It's the GAIN you make on the shares that is taxed, not their sale value. So unless you got them for nothing you won't be taxed on the lot.

Yes for sure. I nearly gave myself a heart attack until i realised this