Hi Keith, not sure what detail you need - does this help? Thanks, Cressida
Hi Keith, sorry i know this, my question is what is the most tax efficient way for me to exercise all my options if I wanted to exercise all the ones I can now? I understood type A are liable to CGT but I get £10.5K per tax year tax free. Are the type A ones then liable to CGT after this and how much is this? Is the CGT taxed at purchase or do i have to do a tax return? And if I exercise the type B ones now when and how do I get taxed? I am a higher rate tax payer for information.
Sorry you haven't answered my question of "if I want to exercise everything now what is the most efficient way to do this?"
Also I don't understand what "The Type A and Type B stocks both seem to be non-qualified stock options so the tax treatment is the same for both types." means - are you saying for all these shares they are liable to income tax and CGT? I was told by work that type A were liable to CGT but type B were subject to IT only.
Hi Keith, so are you saying that on all of them I'd have to pay CGT and income tax? and potentially NI? Thanks, Cressida
Hi Keith, when I model these shares it says I don't have to pay any tax, are you able to explain this? Sorry I'm just confused! Thanks, Cressida
So am I Cressida as only half the document can be displayed and it won't scroll. I need to see the top half too. I have tried to expand it but without success.
Hi Keith does this work? Thanks, Cressida
No, I regret I am still no wiser. I have already mentioned that as non-qualified stock options any gain on sale will be subject to CGT. The way round this is to stagger your sales over a number of tax years to utilise your use it or loose it Annual Exempt Allowance (10.9K this tax year, 11.1K next). Your employer is the one who claims these stock options are tax free and you must enquire as upon what grounds they, or their professional advisers, have come to that conclusion.
Sorry Cressida, but the situation seems utterly confused at this stage.