SAYE Capital Gains Tax

raybrad

Hi
I wonder if someone could look over my Capital gains calculations and tell me if they are correct.
I have been saving £200 per month over 5 years in an approved SAYE for the company I work for.
The option was for 4018 shares @£3.27 total cost £13,140 which consisted of 60 * £200 plus bonuses.
The option matures in January 2008.
My company ABP was bought by a private equity firm earlier in the year and the share price is fixed @ £9.10.
I have the option to exercise the option and have a cheque for the full amount. Or to exercise the option and get loan notes which I can sell in smaller amounts to avoid CGT.
However I am told that these shares quilfy as a business asset and as such are subject to business taper relief at 25% because they have been held for more than 2 years since the option was granted.

My calculation looks like this:

Cost of shares £13140
Selling Price £36563
Actual Gain £23423
25% taper £5856

So the £5856 is below my Yearly CGT limit of £8800.

So I should pay no CGT.

I would be obliged if someone could comment on my calculations as I do not wish to make a very expensive mistake.

Regards
Ray Bradshaw

raybrad

Thanks Jimmo I thought the taper started at option grant (as it does for EMI's) but I have now found you are correct and it is at option exercise. I will take the safe way with loan Notes. However the loan notes can only be cashed twice a year in December 31st and June 30th so I will miss using this year CGT allowance and the whole process will take a little longer. Would you recommend transferring some loan notes into my wifes name to speed things up?