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
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.
Now found answer. Thanks