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  • FIRST POST
    • ulenadmacy
    • By ulenadmacy 6th Feb 18, 8:42 PM
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    ulenadmacy
    Tax on share options that are exercised and sold
    • #1
    • 6th Feb 18, 8:42 PM
    Tax on share options that are exercised and sold 6th Feb 18 at 8:42 PM
    Hi,

    My company is due to be acquired shortly. They've advised that when this happens my share options will be exercised and sold immediately.

    These are unapproved meaning that if I was to exercise them before the company is acquired I would need to pay income tax at 40%, employer NI (13.8%) and employee NI (2%).

    My question is, if they are exercised and sold immediately as part of the takeover do I have to pay capital gains tax on top of the above tax and NI?

    I can't seem to find this scenario and breakdown of tax on the gov.uk site or any other sites.

    Thanks
Page 1
    • pjclar02
    • By pjclar02 10th Feb 18, 10:14 PM
    • 426 Posts
    • 194 Thanks
    pjclar02
    • #2
    • 10th Feb 18, 10:14 PM
    • #2
    • 10th Feb 18, 10:14 PM
    Hello there

    No - there would be no capital gains tax to pay. The base cost price for your shares would be the market value at the date of exercise, and as exercise and sale occur concurrently then there will be no uplift in value liable to capital gains tax. Therefore no capital gains tax due.
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