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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 16670
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have an employee share save scheme that matures in

Customer Question

I have an employee share save scheme that matures in december. I'd like some advice in relation to the most tax efficient way to deal with the gains.
JA: What are the assets or property for this capital gain?
Customer: shares
JA: Anything else you want the Accountant to know before I connect you?
Customer: no
Submitted: 14 days ago.
Category: Tax
Expert:  TonyTax replied 14 days ago.

Hi. My name is Tony. I'm looking at your question now and will post my answer or ask for more information here in a short while.

Expert:  TonyTax replied 14 days ago.

Is this a Save As You Earn Scheme (SAYE)? How much is the potential capital gain?

Customer: replied 14 days ago.
Details: scheme lasted for 3 years, and has an option price of 2.88. I've been saving £375 per month, so my total investment is £13,500. The current share price is £13.20, so the value of the options are £78,453. Giving me an overall gain in the region of £64,000. I'd like to know what i should do in relation to CGT.
Expert:  TonyTax replied 14 days ago.

I think our posts crossed. Can you see the question I have asked?

Customer: replied 14 days ago.
yes. it's a SAYE scheme
Expert:  TonyTax replied 14 days ago.

Thanks. Are you married or in a civil partnership?

 

 

Customer: replied 14 days ago.
no.
Expert:  TonyTax replied 14 days ago.

Thanks.

 

Leave this with me while i draft my answer.

Customer: replied 14 days ago.
Thanks. I'd be interested in knowing what i can access immediately ( Tax free ) and what i should probably put in an ISA. And any suggestions on the best way to do it.
Expert:  TonyTax replied 14 days ago.

There may be a change of government on 12 December so be aware that the CGT rules may change.

 

There can be no CGT until you sell the shares. You can transfer up to £20,000 worth of your SAYE shares into an ISA within 90 days of acquiring them. See here. Normally, you have to sell shares possibly generating a gain and re-purchase them within an ISA. In 2019/20, you can make tax free gains of £12,000 on shares held outside an ISA. If you sell the shares within the ISA, the gain will be tax free. Not all ISAs accept SAYE shares. Consider consulting an independent financial adviser for ISA recommendations.

 

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