Take unpaid holiday vs. receiving work share options?

dhokes

I'm leaving my current job and I could receive my unpaid holiday as cash and lose my work share options or use my holiday and have the right to some work share options. This is the first and only year, I would have taken share options so I'm not sure on the ins-and-outs on how they actually work.

At this moment in time, my share options are worth around £700 profit. My unused holiday comes to around 18 days so totals approx. £2769 [£40,000 / 52 / 5 * 18]. My understanding is that the unused holiday would be taxable whereas the share options wouldn't be as it would be within my capital gains allowance.

I would have 6 months to purchase the shares at the option price. Is it a no brainer to get the unused holiday as cash rather than taking the share options? I wouldn't just go out and spend it. Probably make a reasonable additional contribution to my work pension and invest the extra amount in an index fund? Am I missing anything that I should consider? What would you do?

JCS1

Check the rules of the share scheme carefully.  Some have rules that share options lapse if you leave.

dhokes

JCS1 said:

Check the rules of the share scheme carefully.  Some have rules that share options lapse if you leave.

Yes, I've checked and noticed that if I use some holiday and stay past a certain date, I would still have access to my share options.

Savvy_Sue

There's also the question of what your employer will allow. Once you give notice, the employer can decide how much longer they want you actually working. They might prefer you to fully leave sooner, not taking the holiday as paid leave but to pay you for it. 

I don't know how share options work, but again, they may prefer not to give you access to enhanced options by allowing you to take the holiday as holiday. 

Thrugelmir

There's no need to start more than thread on the same topic. Simply results in people responding going over the same ground. 

https://forums.moneysavingexpert.com/discussion/6295695/leaving-job-with-unused-holidays#latest

getmore4less

dhokes said:

JCS1 said:

Check the rules of the share scheme carefully.  Some have rules that share options lapse if you leave.

Yes, I've checked and noticed that if I use some holiday and stay past a certain date, I would still have access to my share options.

You just terminate after the date required to get the options.

Taking or getting paid for the holiday is a separate issue.