Capital Gains Tax on Staff Share Scheme Proceeds - Moving Abroad?

artyboy

masonic said:

Fair enough, although making an employee redundant usually makes them a "good leaver", whereas resignation is more of a grey area. You should probably see what is written in the shareholder agreement to be sure.

On the other point about reinvesting, if that is the case, then the main risk is that you leave (company and UK) just a little too late. But you could choose to stay and roll over the investment in that case. Presumably there would be some minimum period before which you could resign from that round with good leaver status. So the real question is how bad would it be if you had to stay in the UK for a bit longer than planned?

It's not just the shareholder agreement, the 'good leaver' definition is one in UK law... now if the OPs intention was to retire, then that can be included, but a normal resignation isn't. Of course, there now isn't any real concept of 'retirement' like there used to be, so perhaps that is the grey area you were thinking about?

https://www.gov.uk/hmrc-internal-manuals/employee-tax-advantaged-share-scheme-user-manual/etassum28160

artyboy

[Deleted User] said:

artyboy said:

masonic said:

Fair enough, although making an employee redundant usually makes them a "good leaver", whereas resignation is more of a grey area. You should probably see what is written in the shareholder agreement to be sure.

On the other point about reinvesting, if that is the case, then the main risk is that you leave (company and UK) just a little too late. But you could choose to stay and roll over the investment in that case. Presumably there would be some minimum period before which you could resign from that round with good leaver status. So the real question is how bad would it be if you had to stay in the UK for a bit longer than planned?

It's not just the shareholder agreement, the 'good leaver' definition is one in UK law... now if the OPs intention was to retire, then that can be included, but a normal resignation isn't. Of course, there now isn't any real concept of 'retirement' like there used to be, so perhaps that is the grey area you were thinking about?

https://www.gov.uk/hmrc-internal-manuals/employee-tax-advantaged-share-scheme-user-manual/etassum28160

There are four tax advantaged plans in the UK with good/bad leaver rules.  However, the OP's is not one of these.  As such, they can have any pretty much any definition they want.  Depending on the negotiating power and needs of the parties, what is a good leaver (and what happens if they are) can be very different between companies.  

Have we definitely ruled out all 4? SAYE yes, but I'm not clear what exactly this scheme is (although would be interested in the answer, as I'm less familiar with how it operates with non listed companies...)

Hoenir

babetak said:

There is a real possibility that the investment will pay out sooner (even this year) as the previous rounds lasted 2 and 3 years only. 

How is this "payout" planned to be achieved ?  Personally I'd be a little more cautious.