ESPP gain calculation

I have purchased shares through my US employers ESPP program where the gain has been added to my ordinary income at each event and taxed. I'm planning to sell them all this year but wanted to clarify the gain calculation for the self assessment. Example: the market value was 50,000 and I paid 45,000 with the 5,000 taxed as ordinary income. I'm selling them for 60,000. Is the gain calculated as 1) selling price - market value (50,000) OR 2) selling price - price paid (45,000)?

Hi,
If you dispose of the the shares at the time they vest, there is no capital gains tax.  
If you hold on to them before disposing of them, then there could be a capital gains tax liability, if disposed of for more than the vesting value.
Thank you.

I recall the price paid is the discounted price offered by the employer so the employer will add the difference between the Purchase FMV - Purchase Price as benefit-in-kind on payslip, Purchase FMV or Acquisition FMV may be the right price with selling price to establish the CGT

I am really confused as to why my pay the month after the shares are purchased via my US company EPSS . My understanding is I might be taxed on the gain between market value and discount of 15% . They are purchased at the lower price of the six month period. I sold them right away with overall gain of approximately £800 which seems to now have been completely wiped out in my next pay slip

Hi Alan Cliff,
Sorry, but it is not possible to check individual tax records through this forum.
If you have a question which relates to your personal tax situation or tax code please contact our helpline.  
Income Tax: general enquiries
Thank you. 

 

Thank you for your response, wasn’t asking for personal tax advice I am wanting clarification on how HMRC tax EPSS share schemes in the UK for British employees . There doesn’t seem to be a definitive answer I have found Thank you