CGT hit on employee share sale

Snath

Hi all,
I used to work for an American software company between 2004 and 2013 during which time I was received stock options (20% yearly vest). The total value of the shares today is under £50k and I am looking to sell the whole lot if I can. However, I am confused over CGT applicability and would be grateful for some valued advice from you all. In my research I feel there are 2 possible outcomes:
A. I am a high rate tax payer so I will pay 20% on any profit made from the sale. (gov.uk/capital-gains-tax/rates#:~:text=For%20the%202020%20to%202021,Capital%20Gains%20Tax%20at%2010%25.)
B. I only pay CGT on shares that were worth over £50k when I got them, so for me, that would be no CGT hit. (gov.uk/tax-employee-share-schemes/employee-shareholder-shares)
thanks!
 

tacpot12

For outcome B to be an option, the shares need to have been worth £2000 when you received them. I would interpret this as meaning that if you add up the value of each tranche of shares when you received them, the total would have to be £2000. The alternative meaning is that each tranche would have to be worth at least £2000 when you received the tranche. See if you can meet the requirement using either definition, and if not, call HMRC to ask for clarification.

If you can meet this requirement, then option B is the outcome. It might  help you, once you know how the £2000 is calculated, to see which allocations meet the requirement (if any) because those allocations can be treated as not requiring any CGT. You have a CGT allowance of £12,300 this tax year (and possibly a higher amount next year) - you are allowed to make a gain of £12,300, so if you can exclude some of the allocations as not requiring CGT to be paid, your CGT allowance might cover the rest of your gains. You have the option to sell shares upto your CGT allowance this year, and sell the rest on 6th April 2021, which is just over two months away in order to get the benefit of two CGT allowances. 

macman

If you have a spouse, transfer half the shares into his/her name and then you can both dispose of  £12,300 worth of gain each side of 6/4/21; total CGT allowance is then £49,200, or a little more if the 21/22 allowance is higher.