£100k lifetime CGT relief

ilgitano.2015

Hello all,

I've come into some shares from my employer via a share incentive scheme. I bought the shares for about £5000 when the company went public 2 years ago, and they're worth £50k-£60k now. I've never traded shares before. Looking around, there is no tax on the first £6000, ok, but looking at this gov website www.gov.uk/tax-employee-share-schemes/employee-shareholder-shares.

According to that: From 17 March 2016 you only pay CGT on gains over £100,000 that you make during your lifetime. My EMI shares agreement was made in 2019.

Am I eligible for that? If not, who is? I have found no references to that anywhere else.

MDMD

Employee shareholders are a particular class of employees that in exchange for giving up some employment rights, get some advantages, such as the CGT benefits you mention.

https://www.gov.uk/employment-status/employee-shareholders

Jeremy535897

Have you checked with the company to ensure that your shares are within this scheme?

ilgitano.2015

I've asked twice now, and still waiting for an answer. We have an explicit EMI agreement from 2019. Something may have happened to disqualify the company from the scheme though. I'm trying to find out if we're still within the scheme or if we've been disqualified, what it was that disqualified us. Still waiting for an answer.

What kind of things would disqualify this? I've heard it could be more than 250 employees, which might have been the case, or company valuation or revenue limits?

xylophone

https://www.gov.uk/tax-employee-share-schemes

may be worth a read.