Self assessment and exercising Stock options

[supersport]

I am in the process of getting together my CGT calculations for this year’s self assessment. Mainly means tracking my Section 104 movements.

I was going to include exercising stock options (US company) as a same day transaction. But it occurred to me that in exercising and selling in one go, so taking cash and not stock this is an entirely income tax based exercise.

It will appear on my payslip as such and income tax will be withheld.

Therefore I don’t think I need to track them in my calculations. They certainly don’t contribute any CGT liabilities as they are bought / sold at the same price on the same day.

What do others do, I know I am not the only one here that is in this situation.

[bogie]

I exercise shares every few months in US company and im PAYE employee. On the month of sale It shows up on my payslip and tax is withheld automatically, no need to mention it on SA anywhere else, its already in your taxable earnings and tax paid figures.

[The Leaper]

When I exercised my stock options (USA company also) I was liable for income tax. My employer did not process the trade through PAYE so I dealt with this via SA. Quite useful if timed well: could invest the gross proceeds for up to close to two years before income tax payment was due.

R.

[Somebody]

CGT will only come into play when you hold on to the shares post exercise, and sell them later down the line, subject to the annual allowance of course.

[sumo69]

Somebody said:

CGT will only come into play when you hold on to the shares post exercise, and sell them later down the line, subject to the annual allowance of course.

Correct

[supersport]

Cheers. I think I had pretty much answered my own question.