Original Book Cost of SIP Shares After Redundancy

dodmwe

I was in a 'share match' scheme with my company for 20 years before being made redundant on 30/11/25. I was designated a 'good leaver' and all the more recent taxable and locked shares were opened to me as tax free, along with any normal tax free shares sitting in the plan.

I decided to transfer all of these shares from the SIP to a brokerage dealing account. I understand that all these shares are liable to CGT once they leave the SIP. Is this the case for all the shares, including those share that were taxable/locked, but converted to tax free by my employer? 

Secondly, from what date is the original book cost of the shares leaving the SIP calculated? The day after redundancy (1/12/25), the date I started the transfer (7/12/25), the transaction transfer date (31/12/25) or the settlement date (5/1/26)?

I did receive an email yesterday from my brokerage saying "I can confirm that the total amount received was £XX,XXX.XX and this is broken down as follows, Assets £XX,XXX/XX, Cash £0.00." If I divide the asset value by the number of shares, this equates to the share price on the settlement date of 5/1/26. Is this the one I now use for original book cost? 

The share price bounced around a lot in this period, so getting the date right could significantly impact CGT when I come to sell.

Many thanks in advance.

DRS1

I think this is the page you need
CG56495 - Share Incentive Plan (SIP): employee: CGT - HMRC internal manual - GOV.UK
Have you thought about transferring the shares into an ISA?  Maybe it is too late now (I am not sure if the shares have to go direct from the SIP to the ISA)
Tax and Employee Share Schemes: Transferring your shares to an ISA - GOV.UK

dodmwe

DRS1 said:

I think this is the page you need
CG56495 - Share Incentive Plan (SIP): employee: CGT - HMRC internal manual - GOV.UK
Have you thought about transferring the shares into an ISA?  Maybe it is too late now (I am not sure if the shares have to go direct from the SIP to the ISA)
Tax and Employee Share Schemes: Transferring your shares to an ISA - GOV.UK

Many thanks for this. It is useful. Especially "Shares cease to be subject to a plan,.............when the employee ceases to be in relevant employment while the shares are subject to the plan."

My final day of employment was 30/11/25, and hence I will take the average share price on the day after (1/12/25) as the share price at which I theoretically reacquired the shares, as per the statement "Plan shares that cease to be subject to a plan are treated as having been disposed of and immediately reacquired by the employee at market value."

Fortunately the share price peaked on the 1/12/25 which will help a little with future disposal and CGT. I think I have enough to defend myself if I were ever to get a letter from HMRC. I have acted in good faith and followed HMRC's documentation on the matter.

There appears no guidance on any taxable/locked shares that were converted to tax free status as per my 'good leaver' redundancy status. HMRC recognises the beneficial tax benefit of a good-leaver, and all information points to the fact that all shares are now subject to original book cost on 1/12/25.

Please let me know if you, or anyone else disagrees with the above. I'll leave it a few hours to see if I get any further responses and the advise my brokerage on the original book cost (as per above) accordingly. 

Unfortunately I have no ISA allowance left, and I maxed out my pension with my redundancy payment.

DRS1

There appears no guidance on any taxable/locked shares that were converted to tax free status as per my 'good leaver' redundancy status. HMRC recognises the beneficial tax benefit of a good-leaver, and all information points to the fact that all shares are now subject to original book cost on 1/12/25.

I could be wrong but I think the "tax free status" you get from being a good leaver only refers to income tax not CGT.  So they will all be subject to CGT when you sell and I think you are right about the base cost.

Dead_keen

dodmwe said:

I was in a 'share match' scheme with my company for 20 years before being made redundant on 30/11/25. I was designated a 'good leaver' and all the more recent taxable and locked shares were opened to me as tax free, along with any normal tax free shares sitting in the plan.

I decided to transfer all of these shares from the SIP to a brokerage dealing account. I understand that all these shares are liable to CGT once they leave the SIP. Is this the case for all the shares, including those share that were taxable/locked, but converted to tax free by my employer? 

Secondly, from what date is the original book cost of the shares leaving the SIP calculated? The day after redundancy (1/12/25), the date I started the transfer (7/12/25), the transaction transfer date (31/12/25) or the settlement date (5/1/26)?

I did receive an email yesterday from my brokerage saying "I can confirm that the total amount received was £XX,XXX.XX and this is broken down as follows, Assets £XX,XXX/XX, Cash £0.00." If I divide the asset value by the number of shares, this equates to the share price on the settlement date of 5/1/26. Is this the one I now use for original book cost? 

The share price bounced around a lot in this period, so getting the date right could significantly impact CGT when I come to sell.

Many thanks in advance.

As a good leaver, your base cost for the shares is their market value on the date that they left the SIP trust as that is the day you are treated as acquiring them.  This day is likely to be some when between 1 December 2015 and 7 December 2015 depending on when the SIP administrator got its act together.  If you sell them on that date, the gain is straightforward (sales proceeds less market value on the day you got them out of the SIP is likely to be pretty close to zero, before sales costs).  If you sell them after the day the SIP shares were transferred to you, and you have other shares in the company, things get more complicated as you have to add the shares to the s104 pool and work your gain based on the average base cost of the pool.  

Dead_keen

DRS1 said:

I could be wrong but I think the "tax free status" you get from being a good leaver only refers to income tax not CGT.  So they will all be subject to CGT when you sell and I think you are right about the base cost.

No, a good leaver gets favourable CGT treatment in the same way that someone who has held their shares in the SIP trust for at least five years does.

DRS1

Dead_keen said:

DRS1 said:

I could be wrong but I think the "tax free status" you get from being a good leaver only refers to income tax not CGT.  So they will all be subject to CGT when you sell and I think you are right about the base cost.

No, a good leaver gets favourable CGT treatment in the same way that someone who has held their shares in the SIP trust for at least five years does.

I stand corrected.  I had thought the 5 year thing was about income tax and NICs (as per the table on this page
ETASSUM29020 - Schedule 2 share incentive plan (SIP): Taxation: Tax advantages - HMRC internal manual - GOV.UK)
but I see it also mentions CGT. 

But the sale is only CGT free if the shares are still in the SIP when sold.  If you have taken them out then there will be a CGT event when you sell the shares (though in this case it looks like there might be a loss or very little gain).