How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

If I exercised me previous company's stock options and

Resolved Question:

Hi, if I exercised me previous company's stock options and converted them into stock in August 2015 (it's still a private company), should I declare this tax self-assessment due to end of January?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Did you exercise those options through your former employer? If so, did they apply tax and NIC?
Customer: replied 1 year ago.
The company hosted the options via 3rd party management fund. I exercised via them. No thy did not apply tax and Nic as they are located in Israel and it is my responsibility to declare tax in the UK (Or at least that's what I was told).
Expert:  TonyTax replied 1 year ago.
Thanks. You won't need to disclose anything in the 2015 tax return which I imagine you are completing right now. Assuming the share option scheme was not an approved one which is the case with most foreign share option schemes, then you will have to pay UK tax on the difference between the value of the stock on the day of exercise and what you paid for them if anything via your 2016 tax return so the payment date will be 31 January 2017. Your cost for CGT purposes will then be the sum of what you paid for the shares and the sum on which you pay tax and NIC. I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
Very helpful Tony. Thanks a lot.
M
Expert:  TonyTax replied 1 year ago.
Thanks.
TonyTax and other Tax Specialists are ready to help you