Capital gains on selling share incentive plan shares

dansakman

I worked for a company from 2003 to Aug 2007

The allocated shares to all employees as a benefit. i assume it was some kind of share incentive plan but I've long since lost any associated paperwork.

I do know I received allocations:

18/01/2008  CREST STOCK WITHDRAWAL (REG)    +308        

04/05/2005  ALLOTMENT                                            +833       

And I have found the low/high/open/close share price on those days.

I now want to "Bed and SIPP" some or all of these shares.

I understand that the sale part of this process will be liable to Capital gains tax and I want understand what my liability will be and if I will within the allowance for 23/24 tax year

What is considered to be my capital gain for these shares that were essentially a windfall?

Is it the total current value of the shares?

or do I subtract the average price at point of allotment?

perhaps I need to go back to my employer and find the type of scheme the shares were allocated under?

Hope someone can please help - doing the right thing by HMRC is so complicated!

wmb194

How much money are we talking about and do you have any other capital gains and losses this year? If the sale is within the annual tax-free allowance and you don't have anything else then you needn't worry, £6,000 in 23/24, £3,000 in 24/25 and thereafter.

https://www.gov.uk/capital-gains-tax/allowances

dansakman

I found some papers about the scheme. The company ran both a SIP and a LTIP.

I think 308 shares where what was left over after a 2500 SIP allocation and I lost some because I left the company. 

I think 833 where as a result of the LTIP but the paper work their I have mentioned 12500 shares as part of a contingent award based on performance results reported in 2008. I assume 833 is what I actually got and possibly leaving the company was a factor there. Not got any paperwork around the 833. 

Currently they are worth about £8000 so I guess the very worst the capital gain could be is £8000. 

I think I will "bed and SIPP" £6000 this tax year to ensure I stay under the 23/24 capital gains allowance and do the rest next tax year. 

dansakman

Ok the 308 is SIP for sure. 

The 833 we allocated to me on 4th of May 2005 - the day the company went public and floated on the stock market. 

I don't think I got any shares of the contingent share award under the LTIP as I left the company before the date of vesting.

I'm not sure under what basis I got the shares as part of the IPO 

dansakman

Shares gifted as part of employers IPO the gain is difference between now and value from date of acquiring shares.

So I think I have enough info when I checked the capital gain on the SIP shares and the IPO shares would be £6076 so I might just take the CGT on £76 on the chin just to get it done.

dansakman

and then I've realised I have some other employee shares paying dividends that will become taxable with the allowance changes, Those shares have actually made a capital loss and I think can offset this loss against the gain of the other.