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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 10601
Experience:  FCCA FCMA CGMA ACIS
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Exercised stock option this year and i know i need to pay

Customer Question

Hi exercised stock option this year and i know i need to pay tax but I don't know how to calculate and how to file
JA: Have you talked to a tax professional about this?
Customer: no note yet
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: i haven't done self-assessment before
Submitted: 19 days ago.
Category: Tax
Expert:  bigduckontax replied 19 days ago.

Is this share scheme HMRC approved?

Customer: replied 19 days ago.
how would I know if it's HMRC approved?
Customer: replied 19 days ago.
I have attached the share option scheme
Expert:  bigduckontax replied 19 days ago.

The preamble says it is unapproved! You have a tax liability in two ways. On exercise you are liable to Income Tax (IT) o the difference between the current market value and the striking price. Then when you sell you are liable to Capital Gains Tax (CGT) on any profit made on disposal.

Customer: replied 19 days ago.
i already exercised my share but not sold any
Expert:  bigduckontax replied 19 days ago.

Then there may be an IT liability as I explained.