Share Options

P2white_2

Hi,
I joined a company a year ago and as part of the deal I received a number of share options. As I had to wait a year before exercising these options Im very...very confused what the tax implications are now as from what Ive read I may be paying tax and NI and employers NI on them?
Things are further complicated by the fact the shares are listed on the NYSE... 
If for example the exercise price is say $5.00 and the share price is $50.00 and I had 1000 shares is there a way of working out what I would actually receive or are there many different scenarios that may affect things?

Cheers in advance folks
P

jamesd

Are they approved options or not? Approved meaning for the beneficial UK tax treatment of employee share options. Descriptions of the various tax treatments is at https://www.vestd.com/employee-share-schemes-guide

If they are approved and typical UK employee share options being in the US doesn't matter. You get a profit of ( sale price minus option price ) times number of shares sold. You're liable for CGT on this profit if it exceeds your allowance.

If they aren't approved then you have the same profit but it's processed through company payroll as income subject to both NI and income tax like any other pay. You'd typically be required to pay the employer NI as well.

Those are the two most likely and the first is the more likely of the two. Unless you read that bit about income tax and NI in the details of the scheme...