I have some (approved scheme) options which I need to do something with, but I'm pretty hazy on the various tax implications:rolleyes:. Any help understanding the parameters would be greatly appreciated!
Example: Let's say that a number years ago I was awarded 100 options to buy at £1 and the stock is now worth £3 (ie I can get £2 gain per option) If I cash in half and buy the other half (all as part of the same transaction/request) I end up with 50 shares (worth £3 each) and £50 cash. How much counts towards CGT allowance, and/or towards the approved scheme Income-tax/NI limit? Anything else I need to be wary of?
It depends on the type of scheme granting the option.
If it is a standard company share option plan then you pay CGT only on the gain of the shares sold. The shares you retain have an unrealised gain which you will realise when the shares are sold.
Keep in mind inter spouse transfers could help reduce any chargeable CGT element.
The exercise of the option should normally trigger no income tax or NI.
HTH.
Sent from my U_Pro using Tapatalk on the understanding that this is not tax advice, I am not an accountant and that the value of your home is at risk if you set fire to it