Executive Share Options

[Spencer]

I have some Executive Share options (3000) that can be excercised later this year.The option price is £4.18,the current price is £5.90.My annual salary is £40k.What tax can i expect to pay and is there anyway of limiting this through gifting etc.Thank you.

[Ian McTernan CTA]

Are they approved or unapproved share options? If unapproved, then taxed on difference through PAYE when option exercised. Due to a recent Court case, the base cost would then be market value PLUS the amount charged to PAYE, leading to a capital loss if shares sold straight away. It is likely that this will be changed in the next budget so action now.

Regards.

Ian McTernan CTA
Email: ian@imcternan.com