Tax on Shares
Author
Discussion

Mr Gearchange

Original Poster:

5,892 posts

236 months

Tuesday 10th November 2015
quotequote all
I exercised my right to buy stock options for my ex employer when I left them a couple of years ago.
The business was subsequently sold for $7 per share with me having paid $0.5 so I'm getting a bit of a windfall from them. Company is US based and they are just paying the full amount into my bank account.

How much tax am i liable for on this? I had assumed 40/45% in line with income tax depending on my total earnings for this financial year.

Sorry for the noob question - but never benefited from any shares before now.

Thanks

twinturboz

1,278 posts

208 months

Tuesday 10th November 2015
quotequote all
Will be capital gains tax of which first £11100 is tax free, after that depending if you are in the basic tax or higher rate income tax bracket 18% or 28%.

Eric Mc

125,754 posts

295 months

Tuesday 10th November 2015
quotequote all
If they are going to be subject to Capital Gains Tax, will they not be eligible for Entrepreneurial Relief?

Mr Gearchange

Original Poster:

5,892 posts

236 months

Tuesday 10th November 2015
quotequote all
Awesome - thats far better than I expected. thumbup

JamieBeeston

9,294 posts

295 months

Tuesday 10th November 2015
quotequote all
Eric Mc said:
If they are going to be subject to Capital Gains Tax, will they not be eligible for Entrepreneurial Relief?
Most staff fall foul of the 5% requirement here I'd suspect, especially if this is a traded company.

If the OP did have 5% of a traded company then happy days smile