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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I EXERCISED MY COMPANY SHARE OPTIONS (AIRBUS) THE PROFITS FOR

Customer Question

I EXERCISED MY COMPANY SHARE OPTIONS (AIRBUS) THE PROFITS FOR WHICH WERE SENT BY SOCIETY GENERAL TO MY EMPLOYERS WHO THEN PAID ME THE PROCEEDS VIA PAYROLL. I THEREFORE PAID INCOME TAX AT THE HIGHER RATE ON THE FULL PROFIT OF THE SALE. AM I ENTITLED TO CLAIM BACK THE TAX PAID ON THE ANNUAL ALLOWANCE AND IF SO HOW DO I DO THIS?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Can you tell me what the terms of the option scheme you participated in were please. Are you a UK based employee of Airbus? Which stock exchange are the shares listed on?
Customer: replied 2 years ago.

Not sure what you mean by terms of the scheme - This was part of my remuneration package - i was given options to purchase shares at a fixed price in 2004 that could be exercised at any time between 2009 and 2014 (which i have just done). This was a scheme to retain key personel. I am a UK based employee and the shares are listed in France

Expert:  TonyTax replied 2 years ago.
Thanks.

Leave this with me while I draft my answer.
Expert:  TonyTax replied 2 years ago.

Hi again.

Take a look at the notes here and here.

The only circumstances that the profit on the sale of your option shares would be subjected to income tax and possibly national insurance contributions is because the scheme in which you participated was not an HM Revenue & Customs approved share option scheme. If the scheme was unapproved, then the tax treatment of your profit is correct.

Capital Gains Tax would only be chargeable on any gains in excess of the annual CGT exemption had you held on to the shares and after acquiring them and sold them later at a profit over and above the sum of the amount you paid to exercise the option and the amount you paid income tax on.

You should get in touch with your employer's in-house accountants or human resources people who will be able to tell you whether the option scheme was HMRC approved or not. I'd be surprised if it was given the tax treatment of the gain.

I hope this helps but let me know if you have any further questions.

Customer: replied 2 years ago.

Now found answer. Thanks

Expert:  TonyTax replied 2 years ago.

OK.

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