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Claiming tax back from Management Share Option proceeds paid into an AVC
ParkingEyeSore
Posts: 24 Forumite
I have some outstanding MSOs from my former employer. I left due to retirement so under the rules of the scheme I am still allowed to exercise these options within 6 months of leaving.
The tax advantaged options seem straightforward enough and I will exercise these and pay any CGT due through SA.
However, I'm not so sure about the the non-tax advantaged options. Whilst employed I was able to exercise these and transfer the gross proceeds directly to my AVC without incurring tax/NIC. As I'm no longer employed this option is unavailable and tax/NIC will be deducted at the point of sale before I receive the remaining proceeds.
I'm assuming that I can I pay these net proceeds into an AVC and then claim the the tax/NIC back through SA. Is this correct?
Also would I instead need to use some of my savings to pay the full gross amount into an AVC to get the full amount of tax returned?
I am unlikely to have any other earnings in the 2025/6 tax year as I have not yet taken my pension and am using savings for living expenses.
The tax advantaged options seem straightforward enough and I will exercise these and pay any CGT due through SA.
However, I'm not so sure about the the non-tax advantaged options. Whilst employed I was able to exercise these and transfer the gross proceeds directly to my AVC without incurring tax/NIC. As I'm no longer employed this option is unavailable and tax/NIC will be deducted at the point of sale before I receive the remaining proceeds.
I'm assuming that I can I pay these net proceeds into an AVC and then claim the the tax/NIC back through SA. Is this correct?
Also would I instead need to use some of my savings to pay the full gross amount into an AVC to get the full amount of tax returned?
I am unlikely to have any other earnings in the 2025/6 tax year as I have not yet taken my pension and am using savings for living expenses.
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