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CGT on Startup Equity

DB1234
Posts: 1
Joined: Fri Aug 11, 2017 4:47 pm

CGT on Startup Equity

Postby DB1234 » Fri Aug 11, 2017 4:57 pm

Hi All,

Hopefully you can help.

I've recently been brought in to run a startup and have been given equity.

I've been given 20% of the company split as follows, (5% for passing 3 month probation, 5% after 12 mths, 5% after 2 Years and 5% after 3 Years). The company is currently valued at £0, and should be after 3 months still. But how will it work for the remaining 15%?

What rate will I have to pay on these and when will it need to be paid? in annual tax returns or post sale (we plan to flip the company in 5 years or so)? Also what happens in the situation where I feel I couldn't afford the tax on the shares if I were to accept them? Do I have other options available to me? i.e take the cash value and pay tax on that?

I'm a bit novice on this so any help appreciated.

I'm based in the UK.

Thanks,

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