We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.
Share options worth less when they are granted

CCCS
Posts: 8 Forumite

in Cutting tax
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
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
0
Comments
-
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.0 -
are these part of a share save scheme? in which case you would still be able to get your savings back without paying tax.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe and Old Style Money Saving boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung0 -
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?
0 -
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.0
-
Hi,as you got them free, and if you don't need the money just now, leave them until price recovers.0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.4K Banking & Borrowing
- 252.2K Reduce Debt & Boost Income
- 452.5K Spending & Discounts
- 241K Work, Benefits & Business
- 617.4K Mortgages, Homes & Bills
- 175.7K Life & Family
- 254.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards