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Share options worth less when they are granted

Hi
Some tax treatment advice on some share options please.

I was lucky enough to be awarded some company share options by my employer 12 months ago, which vested in 12 months.
The value when they were awarded was c£4000, but now they have been granted/vested the value is less c£3000 (actionable date is 27th July).
Im hoping you can give me some advice on the tax treatment in this situation:
1) do I get taxed based on the original value of c£4k?
2) do I get taxed based on their value today of c£3k?

thanks



Comments

  • Daniel54
    Daniel54 Posts: 836 Forumite
    Part of the Furniture 500 Posts Name Dropper
    The value to you of the options when they were granted was zero.

    Had the share price increased then the value to you would have been the difference between the option price ( c£4000) and the eventual sale price when you exercised the option

    As the share price now is below the option price, the options hold no value to you

    So no tax is due and the options will simply lapse at the date of possible exercise.
  • Brie
    Brie Posts: 13,526 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    are these part of a share save scheme?  in which case you would still be able to get your savings back without paying tax.
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  • CCCS
    CCCS Posts: 8 Forumite
    Fourth Anniversary First Post
    Hi
    Some more info as I don't think i have explained the situation clearly.
    They were an award of "free" shares - they become "mine" at end of July. 
    Had they retained their original value then I would have had to pay tax on their value if I sold them once they had matured, so tax on £4k, or tax on £3k?

  • Daniel54
    Daniel54 Posts: 836 Forumite
    Part of the Furniture 500 Posts Name Dropper
    edited 9 July 2023 pm31 11:41PM
    Sounds like you  have RSUs .In  that case you will be liable for income tax and NI as at the date of vesting.

    Normally HR would deal with this through payroll.
  • Hi,
    as you got them free, and if you don't need the money just now, leave them until price recovers.
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