Tax Implications of Exercising Hong Kong Share Options as a UK Tax Resident

Before I became a tax resident in the UK in June 2021, my former company in Hong Kong granted me some company share options with an exercise price of A. These share options were related to my previous employment in Hong Kong when I was a Hong Kong tax resident. I haven't exercised the share options since then. If I want to exercise the share options now and the market price (the company is listed on the Hong Kong Stock Exchange) is price B, do I need to pay any income tax on the difference between B and A (given B > A)? In the future, if I sell the shares at price C (given C > B > A), should I declare a capital gain on the difference between C and A?

Hi WL0815,
If you are resident in the UK when the HK shares vest, you will be liable to pay Income Tax on the vested shares.
If you hold on to them after they have vested and dispose of them for a sum greater than the vested value, then a capital gain arises and this should be declared in a Self Assessment tax return.
Thank you. 

Thanks for your reply. I would like to clarify the term "vest". Does it mean when I "exercise the share option and convert the share option to company shares?" If yes, does it mean that when I exercise the share options now and the market price is B, I will need to declare the difference between B and A (given B > A) multiplied by the number of shares I obtain as my income? If yes, should I declare this part of the income in my self-assessment? And which section of the self-assessment form should I use? Thanks!

Hi WL0815,
A vesting date is a date when an individual becomes entitled to the full value or benefits of a particular asset or plan.
If the vlaue has now increased, you will need to report this as a capital gain.
Thank you.