Executive share options and CGT

Hello,
I have an approved share option plan (liable for CGT but not NI/IT). I have £8500 GCT allowance, as does my wife (who doesn't work).
I would like to exercise my share options and sell them the same day.
My main concern is the transfer to my wife. How can I convince the Inland Revenue that I am transferring to my wife? Our bank accounts are all in our joint names.
Thanks
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Hello,
I have an approved share option plan (liable for CGT but not NI/IT). I have 8500 GCT allowance, as does my wife (who doesn't work).
I would like to exercise my share options and sell them the same day. My main concern is the transfer to my wife. How can I convince the Inland Revenue that I am transferring to my wife? Our bank accounts are all in our joint names.
Thanks
You can't! You sell you pay! Could you not exercise your options but not sell ie get shares in your name then transfer to your wife? Not sure if this would be acceptable to IR.
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Well, that is what I was hoping to do, but if I have all the shares in my name, what is the easist way to do the transfer to my wife? I presume I cannot do something as simple as writing an IOU :)
Do I have to get seperate certificates or get one certificate and then arrange myself to get it seperated? I really have no clue ;)
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Hello,
I have an approved share option plan (liable for CGT but not NI/IT). I have 8500 GCT allowance, as does my wife (who doesn't work).
I would like to exercise my share options and sell them the same day. My main concern is the transfer to my wife. How can I convince the Inland Revenue that I am transferring to my wife? Our bank accounts are all in our joint names.
Thanks
============= I think you are operating under a misaprehension that its at the point of selling the shares you are liable for CGT. AFAIK, usually if you exercise the options you are liable for the CGT on the profit you made between the option price and the actual price at the time you execised the option. Whether you later sell is irrelevant. eg if your option price is say 1, and the shares are worth 10, you now owe 9xno of shares. If 1 second later you sell the shares at 10 each, there is no CGT to pay, because you already paid CGT at a price of 10, and that is now your price for any later sale. So if they were say 25 a year later, CGT would be 15.
--
Tumbleweed

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Yes, that's certainly the way it works with our share option scheme, if we buy and keep the shares there is an immediate liability for tax.

--
Chris Green


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of

exercise

the

Isn't that initial liability to income tax rather than CGT?
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wrote

I dont think so because there is no NI due on it, and certainly in the past I've put it in the share trading form on the return and had no problems. Its also not classfied as income on the end of year statement ?P60?.
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I.e ALL the gain is taken away as tax?
--
John Boyle

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writes

Well spotted, sometimes you think thats the way the system is headed, but obviously my keyboard is broken again, and it should have written what I meant to say, which was CGT is liable on 15.
:-)
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