Employee Sharesave Scheme - Ending Early due to takeover

incesticde

Hi Everyone,


My wife's company sharesave scheme is ending early due to a takeover of the company by an American company. Having read through all the literature and googling this site extensively I have a couple of questions


She is 2 years and a couple of months into the scheme, she can exercise the share option and purchase the shares with the money she has accrued, the shares she purchases will then be immediately converted to the shares (and cash) in the new company at the takeover offer price


(lets say £3000 invested in sharesave will give her £2000 in cash and 200 shares in new company valued at USD $10000 = roughly £10,000 return )


If we take the money and run : As I understand it (and please feel free to correct me!) as the scheme has ended early (google says) my better half will have to pay income tax on the share gain (not capital gains tax) which will be taxed at the top of her rate. As she is part time making approx. £7000 a year does this mean that the remaining £3600 of her tax free allowance can be used to offset some of the tax liability?


Thank you