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Where Taxpayers and Advisers Meet

Selling Company Share Options

Posts: 4
Joined: Wed Aug 06, 2008 4:09 pm

Selling Company Share Options

Postby a7awo » Wed Apr 12, 2017 12:50 pm

When I started my current job back in 2012 I was given some share options with the view that when the company finally goes IPO I can convert these options in to real shares and sell them.

So as I have had the share options for over 3 years I do not incur income tax only capital gains tax.

So last year (2016) I sold some shares and I want to find out whether I am subject to capital gains on the total sum of sold shares (minus my yearly allowance) or only from the price they were converted to real shares to the price they were finally sold at? i.e. they were converted to real shares at a price of 500p on the Monday and then sold at the price of 510p on the Friday ... so the profit made was 10p on every share.

Ian McTernan CTA
Posts: 1232
Joined: Wed Aug 06, 2008 3:02 pm
Location: Bedford

Re: Selling Company Share Options

Postby Ian McTernan CTA » Thu Apr 13, 2017 10:58 am

Every share option scheme can be a variety of beasts, and in addition the tax treatment of them changes almost every year.

It also depends on how they were granted, under what terms, etc.

You need to dig out all the paperwork from when they were issued as a starting point.

Your best bet is to ask the company's accountant for chapter and verse as they are likely to know and given similar advice.
McTernan Associates Ltd
Chartered Tax Advisers
Email through link on website:

Posts: 4
Joined: Wed Aug 06, 2008 4:09 pm

Re: Selling Company Share Options

Postby a7awo » Thu Apr 13, 2017 11:52 am

Noted, thank you for replying

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