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Posted Thu, 20 Jun 2024 19:56:40 GMT by Cain Lau
I sold some share options (i.e. Short Put Option) on Stock Exchange and received premium totally £550 in the accessment year of 23/24. All of them, the price of underly shares were over execise price at the end of closing date. This meant, I could earn the whole premium of £550. May I know which catalogue of these earning should be? Interest Income Tax or Capital Gain Tax? Thank you.
Posted Wed, 26 Jun 2024 13:14:53 GMT by HMRC Admin 5
Hi 

The disposal of share options for more than they were acquired for results in a capital gain.  
If the gains in a tax year exceeds the annual exempt allowance (AEA) currently £3000, then the remainder is taxable at 10% or 20% or a combination of both, depending on your circumstances.  
If the share are based in the UK, then you would declare gains above the AEA online, using the real time transaction service at Report and pay your Capital Gains Tax.  
If the shares are located overseas, then the gain is declared in a self assessment tax return.

Thank you

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