CGT on ESPP purchased share sales

[Old.Nick]

This may already have been addressed but I cannot find a definitive answer. It concerns CGT on ESPP share sales.

During the mid 1980s, my US company's UK operations introduced an share purchase plan for employees whereby US Company shares could be purchased at a discount of 15%. The scheme was paid for by monthly deductions from salary payments (after tax) and when sufficient funds were available, shares in the US company were purchased. These shares were 'Lodged' ( is that the same as held in Trust ?) and were restricted from sale until held for 1 year. The scheme was further enhanced with the allocation of an additional (matching) share for every one so purchased - with a restriction on their sale until they were officially 'released' after 5 years. I participated in this scheme for 5 or 6 years until I took retirement in 1992

Not having sold anything in the intervening 25 - 30 years, the accumulated shares increased in value and I eventually sold them. The question I now need to ask is how are these shares treated from a CGT point of view ? I am a UK citizen and resident in the UK.

After all this time, it is proving difficult to determine purchase costs should Capital Gains Tax (which exceeds the annual allowance) be due. Should this be the case, as the shares were purchased in the 1980s, would indexation or taper relief be available for the years in which it was allowed ?

Any clarification would be gratefully appreciated.

[AnthonyR]

Hi Nick

The question of taper and indexation is straightforward - there's no such thing any more. The gains will be taxed at a flat rate of 20% after your annual exemption.

The question of your actual gain will be more complex and in order to get full details of your base cost it may be necessary to contact your former employer to see if they have records of the price paid over that period of time.

Someone else may be able to add more though.