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.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask Mo Tax Expert Your Own Question
Mo Tax Expert
Mo Tax Expert, Accountant
Category: Tax
Satisfied Customers: 544
Experience:  Accounting and Tax Expert
115058980
Type Your Tax Question Here...
Mo Tax Expert is online now

My employer has an Employee Share Scheme. I disposed of

This answer was rated:

My employer has an Employee Share Scheme. I disposed of shares in prior tax year. I thought I did not need to pay CGT. Now I'm not sure and can't find the right information on HMRC. I need help. I'm worried that I owe CGT
JA: Have you talked to a tax professional about this?
Customer: no. I want to though
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: no

Hi and welcome to JustAnswer. I’m Mo Barrie, Qualified Accountant and Tax Expert. I’m currently reviewing your question and will respond to you shortly.

Thank you for your patience.

Usually, under the EMI scheme rules, all shares acquired under the terms of an EMI option will qualify for Business Asset Disposal Relief. This means that the uplift in value from the exercise price will be taxed at 10% instead of 20% (or 10% for the unused basic rate income tax band).

Customer: replied 13 days ago.
what's EMI? so I do need to pay CGT at 10%

If the employer registered the shares as an enterprise management incentives scheme.

Otherwise, normal tax may apply.

Do you know the type of scheme or is it just a basic unqualified scheme?

Customer: replied 13 days ago.
I don't know. I suspect it is an EMI.

Ok. I guess that answers your question.

You would have to file a tax return to declare the disposal of shares.

Customer: replied 13 days ago.
Thanks. What is the charge for doing that flor me/showing me how to do that? I've always been PAYE, never had an ESPP before and haven't submitted self assessment before

Sure, I would be happy to help as best as I can.

Kindly book a call to understand your circumstance and to send over a premium service proposal.

Customer: replied 13 days ago.
OK. but I can't do the call now. how do I book the call?

Just sent. Thank you.

Mo Tax Expert and other Tax Specialists are ready to help you
Customer: replied 12 days ago.

XXXXXXX

Thank you for your time today.