Share options & CGT

[Steve Campbell]

After some advice please.

I was recently made redundant and have a number of share options which I have 12 months to decide to exercise or not.

If I exercise and sell, I clearly have to be aware of the total profit I make for CGT and personal allowance etc.

If I sell to cover, does the profit made on those I sell count towards CGT allowances ?

Eg if I have 10 share options @ £10 and current price is £20, if I exercise and sell I have made made £100 which would go towards CGT allowance.

If I have 10 share options @ £10 and current price is £20 and I sell to cover, I make £50 on the 5 I sell + I keep 5 shares. Does the £50 count towards CGT ?

Haven't really exercised options much in the past, so trying to figure out what to do and when.....

[Jockman]

You have an £11,100 Allowance this year. Then a new one after April 5th next year.

[Ozzie Osmond]

The are many different "flavours" of share options, with different tax treatments.

In a redundancy situation I would expect your employer to be giving guidance to employees regarding the precise tax treatment of share options.

[LC23]

Ozzie is right. Share options are not automatically cgt and you may well find they are chargeable to income tax (and NIC) on exercise. You really need to ask for the documentation.

[schmunk]

https://www.gov.uk/tax-employee-share-schemes/over...

This is clearly written and authoritative.