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    • EricTheKing7
    • By EricTheKing7 15th Oct 16, 11:29 AM
    • 22Posts
    • 10Thanks
    Tax implications of EMI Share scheme
    • #1
    • 15th Oct 16, 11:29 AM
    Tax implications of EMI Share scheme 15th Oct 16 at 11:29 AM
    Next year I'm likely to benefit from exercising a company EMi share scheme. I'll try and keep the figures simple (for my sake). It will be worth 20,000 - 20,000 shares at an exercise price of 1. I get them at the option price of .1p so effectively for free. As they are free I understand that hmrc view this as a bonus and is taxed accordingly. I'm usually in the low tax band but half of this 'bonus' takes me into the higher tax band. I also understand that I will need to pay NICs for both myself AND my company's so I estimate I will receive approx 10,000. I would like to keep the shares but understand the tax bill is to be paid very soon after exercise and would still be 10,000 even if the shares later dropped in value. So my question is (eventually) if I cash in the shares immediately can I put all this bonus into my pension and put off the tax/Nics costs until retirement? If hmrc treat it like a salary bonus, can I ask my employer to put it straight into my work pension - I'm 52 years old with a pension pot of over 100,000 so I'm thinking at 55 I could take 25% tax free - effectively the whole of the bonus. I'm sure I'm being far too optimistic and ignorant of the rules but if anyone can enlighten me on this or have more accurate advice I'd appreciate it.
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